French energy giant TotalEnergies announced on Monday its withdrawal from two offshore gas fields in South Africa, citing economic challenges. The gas fields, Brulpadda and Luiperd, located off the southern coast of South Africa, were deemed not commercially viable.
TotalEnergies holds a 45 percent stake in the 19,000 square kilometer block where these fields are situated, approximately 175 kilometers from the coast. The company stated that it could not economically develop and monetize these gas discoveries for the South African market.
Qatar Petroleum, which owns a 25 percent interest in the block, also declared its intention to withdraw from the project. Earlier in July, CNR International, which holds a 20 percent stake, announced its departure from the block as well. However, Africa Energy Corp, a Canadian oil and gas exploration company with a 10 percent stake through a subsidiary, has decided to remain involved.
Africa Energy Corp highlighted that under a joint agreement, companies that exit the block must forfeit their stakes to the remaining partners without compensation. The company emphasized the significance of the gas fields, describing them as the largest natural gas discoveries in South Africa, capable of supplying a substantial portion of the country’s energy needs as it transitions from coal-fired power plants.
Environmental groups have opposed the project, expressing concerns that deep-water drilling could threaten regional biodiversity and the livelihoods of local fishermen.
