TotalEnergies, QatarEnergy to quit South African offshore gas block

French TotalEnergies and Qatari state-owned QatarEnergy have announced their intention to relinquish their respective 45% and 25% stakes in Block 11B/12B on the South African continental shelf, according to Canada's Africa Energy Corp.

In early July, the fourth partner, South African CNR International, which held a 20% stake, also announced its withdrawal from the project.

Under the terms of the agreement, the partners are ceding their stake free of charge.

“Despite the challenges and delays encountered so far, the company remains confident that the Block 11B/12B resources can be developed commercially. The Brulpadda and Luiperd fields are the largest natural gas discoveries in South Africa and, if developed, could significantly contribute to the country’s energy needs as it transitions away from coal-fired power plants,” stated Africa Energy Corp.

TotalEnergies, in its press release, recalled entering the project in 2013 and making two gas condensate discoveries, Brulpadda and Luiperd. However, commercial exploitation did not commence due to the difficulties in economically developing and monetizing these resources for the South African market.

The company reported the discoveries without disclosing the exact reserves. The Luiperd well, drilled to a depth of approximately 3,400 meters in 2020, uncovered 73 meters of net gas condensate in well-developed, high-quality Lower Cretaceous reservoirs. In 2019, the Brulpadda field was discovered at a similar depth with 57 meters of gas condensate deposits.

According to the African Energy Chamber, the block's reserves are estimated to be around 3.4 trillion cubic feet of gas and 192 million barrels of gas condensate.

Additionally, TotalEnergies has decided to exit the offshore exploration Block 5/6/7, where it holds a 40% stake. Following these exits, the French company, along with various partners, will retain exploration rights to the Deep Water Orange Basin and Orange Basin Deep blocks on the west coast of South Africa, Outeniqua South on the south coast, as well as Block 3B/4B to the east of DWOB.

News.Az