TotalEnergies confirms exit from South Africa plays

South Africa

JOHANNESBURG, July 29, 2024 – TotalEnergies confirmed its exit from South Africa’s offshore blocks 11B/12B and 5/6/7 in a press release on Monday.

TotalEnergies EP South Africa has been active in Block 11B/12B since 2013, holding a 45% interest. The block’s two gas discoveries could not be converted into commercial developments, the company said.

The subsidiary also holds 40% in Block 5/6/7. The company did not cite a reason for the exit from that play.

The exit from Block 11B/12B was first reported early this month, after TotalEnergies notified South Africa’s oil and gas regulator.

At the time, a source told Bloomberg that the move is intended to free up resources to concentrate on other exploration in the area, including Namibia.

In March, the company and partner QatarEnergy together acquired a majority stake in an exploration licence in South Africa’s portion of the prolific Orange Basin, where the French player has seen success with its Venus discovery on the Namibian side.

The company discovered two gasfields in Block 11B/12B in 2019, and their development was anticipated to supply an idled gas-to-liquids refinery at Mossel Bay on the country’s south coast. However, discussions on the price of the gas had stalled for years.

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