TotalEnergies, a prominent French energy corporation, announced on Monday its decision to withdraw from two offshore gas fields located in South Africa. This decision was made after careful consideration and evaluation, as the fields were deemed economically unviable.
TotalEnergies holds a 45% stake in a block off the southern
coast of South Africa, where the Brulpadda and Luiperd fields were discovered.
TotalEnergies said they could “not be turned into a
commercial development as it appeared to be too challenging to economically
develop and monetise these gas discoveries for the South African market.”
The block, spanning 19,000 square kilometres (7,335 square
miles), is located 175km (109 miles) off the South African south coast.
Qatar Petroleum, which holds a 25 per cent interest in the
block, also announced its intention to withdraw from the project, said Africa
Energy Corp, a Canadian oil and gas exploration company with a 10 per cent
stake through a subsidiary.
CNR International, another partner that holds a 20 percent stake in the block, had previously declared its exit in July.
Africa Energy Corp has stated its commitment to remain involved in the project and emphasized that, according to the joint agreement, companies that opt out of the block would relinquish their stakes to the remaining partners at no cost.
The company has highlighted that the gas fields represent "the most significant findings of natural gas reserves in South Africa."
It added, “If developed, it could supply a significant
portion of the country’s energy needs as it seeks to transition away from
coal-fired power plants.”
Environmental advocacy groups have expressed their opposition to the project, issuing a warning that conducting drilling operations in the deep waters poses a significant threat to the region's biodiversity and the livelihoods of fishermen.