TotalEnergies, a French energy firm, announced on Monday that it is withdrawing from two offshore gas fields in South Africa, citing economic infeasibility....For More READ THE FULL STORY▶▶
The company’s subsidiary holds a 45% stake in the block where the Brulpadda and Luiperd fields are located.
TotalEnergies stated that the gas discoveries are not commercially viable due to significant challenges and costs associated with developing and marketing them for the South African market.
The block, covering 19,000 square kilometres (7,335 square miles), is situated 175km (109 miles) off South Africa’s south coast.
Qatar Petroleum, which has a 25% interest in the block, also announced its intention to exit the project, according to Africa Energy Corp, a Canadian oil and gas exploration company holding a 10% stake through a subsidiary.
Another partner, CNR International, which owns 20% of the block, had already declared its departure earlier in July.
Africa Energy Corp stated it does not intend to withdraw from the project and noted that under a joint agreement, companies that exit the block would forfeit their stakes to those that remain.
The company remarked that the gas fields represent “the largest discoveries of natural gas resources in South Africa.”
It added, “If developed, it could supply a significant portion of the country’s energy needs as it transitions away from coal-fired power plants.”
Environmental groups have opposed the project, arguing that drilling in the deep waters would threaten the region’s biodiversity and fishing industry.…For More READ THE FULL STORY▶▶
