TotalEnergies Exits South African Gas Field
TotalEnergies has notified South Africa’s petroleum regulator about its decision to exit the 11B/12B offshore gas field.
In 2019, TotalEnergies identified two significant gas reserves in Block 11B and 12B off the southern coast of South Africa. This departure represents a significant blow to South Africa’s plans, which hoped to use the gas to restart a dormant gas-to-liquid refinery in Mossel Bay.
Negotiations over gas pricing have been at a standstill for years, during which time TotalEnergies has shifted focus and invested substantially in exploring neighboring Namibia, a region gaining attention after recent discoveries by TotalEnergies, Shell, and Galp.
A source disclosed to Reuters that the primary reason for TotalEnergies’ withdrawal is the failure to secure a viable market for the gas.
“They have not withdrawn their production right application (to 11B/12B),” added the source, who was not authorised to speak to the media.
TotalEnergies did not respond immediately to a request for comment.
TotalEnergies partnered with QatarEnergy in March to buy a stake in a license seeking oil and gas on the west coast of South Africa as part of plans to develop the Orange Basin in Namibia.
The Orange Basin, known for its abundant petroleum discoveries in Namibia, extends southward into South African waters.
