Too hot to handle: TotalEnergies quits South African offshore blocks
Sopuruchi Onwuka
French multinational major which celebrated rare hydrocarbon discoveries offshore South Africa is now counting losses after the terrains proved too hostile for safe and profitable commercial operations.
TotalEnergies had entered into Block 11B/12B in 2013 and made two gas discoveries, Brulpadda and Luiperd, at a time oil prices remained very strong. The market incentives of the time was hoped to drive high production cost and still deliver profits.
However, The Oracle Today gathered, the gas fields could however not be turned into a commercial development as they now prove to be too challenging to economically develop and monetize for the South African market.
TotalEnergies which came to town with the technology and purse that accommodates all partners in the deepwater investments is now leaving with all carried entities, and also taking away all the hopes that South African government placed on the discoveries.
“Following the decision of the partner CNRI to withdraw from Block 11B/12B, TotalEnergies also announces its withdrawal from this block, off the Southern coast of South Africa, in which its affiliate TotalEnergies EP South Africa holds a 45% interest.
“TotalEnergies has also decided to exit from offshore exploration Block 5/6/7 where TotalEnergies EP South Africa currently holds a 40% interest,” the company announced.
