French energy giant TotalEnergies has decided to exit several offshore blocks in South Africa, including Block 11B/12B.

The announcement follows a similar move by its partner CNR International (South Africa), a subsidiary of Canada's CNR.

It comes after a review of options for its 45% stake in the block, which it acquired in 2013.

The company also plans to leave exploration blocks 5/6/7, where it holds a 40% interest.

TotalEnergies’ withdrawal coincides with QatarEnergy’s decision to exit its 25% interest in Block 11B/12B.

This decision was confirmed by Africa Energy, a partner in the joint venture.

Under the joint operating agreement, the withdrawing parties' interests are to be assigned free of charge to the non-withdrawing partners, proportionate to their existing stakes.

Africa Energy, through its investment in Main Street 1549, which currently holds a 10% interest in Block 11B/12B, has expressed its intention not to withdraw.

The company remains optimistic about the commercial viability of the block's resources, despite the challenges and delays encountered.

The Brulpadda and Luiperd gas discoveries in Block 11B/12B are considered the largest in South Africa.

If developed, they could significantly contribute to the country's energy transition away from coal-fired power plants.

However, TotalEnergies found these discoveries too challenging to develop and monetise economically.

In a statement, TotalEnergies said Brulpadda and Luiperd could “not be turned into a commercial development as it appeared to be too challenging to economically develop and monetise these gas discoveries for the South African market”.

The exit of TotalEnergies and QatarEnergy is contingent on receiving the necessary regulatory approvals from South African authorities.

If approved, Main Street 1549 is expected to hold a 100% interest in Block 11B/12B.

Africa Energy is now focusing on obtaining the production right approval for the block and securing offtake customers.

"TotalEnergies to exit South African offshore blocks " was originally created and published by Offshore Technology, a GlobalData owned brand.

 

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