Total quits gas discoveries in South Africa
TotalEnergies is exiting its discoveries of gas condensate off the tip of South Africa.
Following its partner CNR International’s decision to withdraw from Block 11B/12 B (off the Southern Coast of South Africa), the French energy giant is also withdrawing.
TotalEnergies EP South Africa holds a 45% interest in the block.
The French Giant entered into Block 11B/12B in 2013 and made two gas discoveries, Brulpadda and Luiperd.
That said, neither could 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.
TotalEnergies also decided to exit exploration Block 5/6/7 (SouthWest of Cape Town), where TotalEnergies EP South Africa currently holds a 40% interest.
In 2019, Total spent $400 million (R7.3 billion) to find an estimated 1 billion barrels equivalent of light liquid hydrocarbon at the Brulpadda field. The following year, it had more success in the Luiperd field.
Bloomberg previously reported that the company will move on to concentrate on exploring the Orange Basin, which is north on the Atlantic coast of South Africa near promising oil discoveries in Namibian waters
Potential production from Brulpadda and Luiperd was intended to help the country reduce its dependence on coal and provide feedstock for PetroSA’s 45,000-barrel-a-day gas-to-liquids plant, which depends on the depleted fields nearby.
Major players are mixed in South Africa
The news from Total comes amidst a significant shift in attitude amongst international energy companies and South Africa.
Shell recently announced that it would sell its downstream business in South Africa, including its forecourts across the country.
Shell has over 600 forecourts in South Africa and has operated in the retail space for over a century.
That said, Shell will still keep its upstream business and will retain its explorative and extractive activities in the Karoo and off the Wild Coast.
Shell has faced significant opposition to its planned seismic surveys by environmental groups and lost in court.
On the other hand, BP has announced a “long-term” strategy for its presence in South Africa.
This includes expanding its 500 forecourts and upgrading its service offerings across the country.
“From our forecourt to our partners in retailing, storage and distribution, we are dedicated to remaining a forward-looking, responsible and effective steward of South Africa’s energy supply networks for as long as the country needs us,” said BP South Africa CEO Taelo Mojapelo.
BP’s strategic roadmap has the long term with three key goals:
- To expand and enhance the portfolio of over 500 service stations while growing the number of forecourts owned by black entrepreneurs or run by black franchisees.
- Upgrading and expanding its forecourt offerings.
- Optimising its supply model.
“BPSA’s strategy fits into the global group’s broader focus on reimagining energy, as BP pivots from being an international oil company that produces resources to an integrated energy company that delivers solutions for customers.”
That said, BP, along with Shell, sold the South African Petroleum Refinery (Sapref) to the state-owned Central Energy Fund for R1.
Sapref has been closed since 2022 after widespread floods.
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