By John Ikani
French energy giant TotalEnergies announced on Monday, its decision to withdraw from two offshore gas fields in South Africa, citing economic viability concerns.
The company holds a 45% stake in the block where the Brulpadda and Luiperd fields were discovered.
TotalEnergies stated that developing and commercializing these gas discoveries for the South African market presented significant economic challenges.
The block, covering a vast area of 19,000 square kilometres, is located approximately 175 kilometres off the country’s southern coast.
Qatar Petroleum, holding a 25% interest in the block, has also expressed its intention to withdraw, according to Africa Energy Corp, a Canadian oil and gas exploration company with a 10% stake.
CNR International, another partner with a 20% share, announced its departure earlier in July.
However, Africa Energy Corp has confirmed its commitment to the project, benefiting from a joint agreement allowing companies to relinquish their stakes to remaining partners.
The company emphasized the gas fields as South Africa’s largest natural gas discoveries, with the potential to significantly contribute to the country’s energy needs as it transitions away from coal.
Environmental groups have consistently opposed the project, raising concerns about the potential impact on the region’s biodiversity and fishing industry due to deep-water drilling.
