TotalEnergies Announces Exit from South Africa's Offshore Gas Fields

TotalEnergies has announced its exit from offshore gas fields off the southern coast of South Africa, following its partner CNRI's decision to withdraw from Block 11B/12B. This block, where TotalEnergies EP South Africa holds a 45% stake, was entered by the company in 2013. Despite making significant gas discoveries, including Brulpadda and Luiperd, the challenges of developing and monetizing these finds for the South African market proved too great.

The company had hoped to turn these discoveries into commercial ventures, but the economic hurdles associated with their development made it impractical. As a result, TotalEnergies has decided to step away from this block.

Additionally, TotalEnergies will also exit from offshore exploration Block 5/6/7, where it holds a 40% interest. The decision reflects a strategic move to reassess and redirect resources and efforts towards other opportunities.

TotalEnergies' withdrawal marks a significant shift in its operations in the region. The company’s involvement in these blocks had been part of a broader strategy to explore and develop energy resources off South Africa’s coast. However, the complexities and costs involved in bringing these gas fields to commercial production have led to the decision to cease further investment in these particular ventures.

The company remains committed to its broader strategy of focusing on projects that offer more viable economic returns and aligns with its global energy goals. As TotalEnergies moves forward, it will continue to seek out opportunities that match its strategic objectives and offer promising potential for development and growth in the energy sector.

TotalEnergies is a global integrated energy company engaged in the production and marketing of diverse energy sources, such as oil, biofuels, natural gas, green gases, renewables, and electricity. With over 100,000 employees dedicated to delivering energy that is reliable, affordable, and sustainable, TotalEnergies operates in approximately 120 countries. The company prioritizes sustainability in its strategy, projects, and operations, making it a central focus of its global activities.

TotalEnergies has been active in South Africa since 1954, beginning with the distribution of petroleum products. The company is a prominent player in Fuel Marketing & Services, Lubricants Blending, Exploration & Production, and Renewables. For seventy years, TotalEnergies has been dedicated to advancing South Africa's energy sector. With a diverse portfolio, the company operates a network of 550 retail sites and provides nationwide LPG distribution to meet domestic energy needs. TotalEnergies also holds exploration rights in collaboration with various joint venture partners over Blocks in the Deep Water Orange Basin, Orange Basin Deep (west coast), Outeniqua South (south coast), and has recently entered Block 3B/4B to the east of DWOB.