TotalEnergies to Exit Offshore Gas Field in South Africa,

Date:

Dealing a Blow to the Country’s Energy Hopes
CAPE TOWN, July 2 (Reuters) – French oil major TotalEnergies (TTEF.PA) has informed South Africa’s petroleum regulator of its intention to withdraw from the 11B/12B offshore gas field, a significant setback for the country. Although the company has yet to submit a formal withdrawal request, the move is seen as a blow to South Africa’s energy ambitions.

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TotalEnergies discovered two large gas deposits in Block 11B/12B off the southern coast in 2019. The gas was expected to potentially revive the dormant national gas-to-liquid refinery in Mossel Bay. However, protracted negotiations over gas prices and a shift in TotalEnergies’ investments towards neighboring Namibia have influenced the decision.

“The main reason for the withdrawal is the inability to secure a market for the gas,” a source from Petroleum Agency SA told Reuters. Despite this, the source noted that TotalEnergies has not yet withdrawn its production right application for Block 11B/12B.

TotalEnergies did not immediately respond to requests for comment. Earlier this year, the company partnered with QatarEnergy to acquire a stake in an oil and gas exploration license on South Africa’s west coast, aligning with its plans to develop the Orange Basin in Namibia—a region that has yielded significant petroleum finds for TotalEnergies, Shell, and Galp.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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