The French energy conglomerate TotalEnergies has announced its decision to relinquish its interests in two offshore gas fields located off the southern coast of South Africa.
News About Nigeria reports that the company’s subsidiary holds a significant 45% stake in the block where the Brulpadda and Luiperd fields were discovered.
However, TotalEnergies has determined that the gas discoveries are not commercially viable due to the substantial challenges and costs associated with developing and marketing them for the South African market.
The block, which spans an extensive area of 19,000 square kilometres, is situated approximately 175 kilometres off the South African south coast.
Qatar Petroleum, which holds a 25% interest in the block, has also announced its intention to withdraw from the project.
This decision was disclosed by Africa Energy Corp., a Canadian oil and gas exploration company with a 10% stake in the project through a subsidiary.
Another partner, CNR International, which owns 20% of the block, had previously announced its departure from the project in July.
The company emphasises the significance of the gas fields, describing them as the largest discoveries of natural gas resources in South Africa.
The company said the gas fields were “the largest discoveries of natural gas resources 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 groups have opposed the project, warning that drilling in the deep waters would threaten the region’s biodiversity and fishermen.
It added that if developed, the fields could provide a substantial portion of the country’s energy needs, aligning with South Africa’s goal of transitioning away from coal-fired power plants.
However, environmental groups have voiced opposition to the project, citing concerns about the potential risks of drilling in deep waters, including threats to biodiversity and the livelihoods of fishermen in the region.
