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TotalEnergies says will quit South African offshore gas block
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TotalEnergies says will quit South African offshore gas block
Jul 29, 2024 6:10 AM

CAPE TOWN, July 29 (Reuters) - French oil major

TotalEnergies said on Monday it would withdraw from an

offshore natural gas block off South Africa's southern coast

because developing the finds commercially would be too

difficult.

Earlier this month, TotalEnergies had signalled its

intention to withdraw from Block 11B/12B, dealing a blow to

South Africa's efforts to become energy independent by

developing its largest offshore gas discoveries ever.

"TotalEnergies entered into Block 11B/12B in 2013 and made

two gas discoveries, Brulpadda and Luiperd, which could however

not be turned into a commercial development as it appeared to be

too challenging to economically develop and monetize these gas

discoveries for the South African market," the company said in a

statement, without giving further details about the challenges.

Oil companies have faced a series of court challenges by

environmentalists and bureaucratic delays that have dampened

investor appetite in South Africa's offshore zone, where rough

seas and strong currents also complicate exploration efforts.

TotalEnergies' exit follows an earlier decision by its

Canadian partners CNRI to withdraw from Block 11B/12B, which

South Africa's government hoped could supply gas to an idle

gas-to-liquid plant at Mossel Bay operated by national oil and

gas company PetroSA.

TotalEnergies, which held a 45% stake in the block, also

decided to exit offshore exploration on the west coast in Block

5/6/7, where it held a 40% interest.

However, the company held onto a stake in Block 3B/4B, which

lies on South Africa's side of the Orange Basin, just south of

big discoveries by Galp, Shell and

TotalEnergies' own Venus discovery in neighbouring Namibia.

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