French energy giant TotalEnergies announced on Monday its decision to withdraw from two offshore gas fields in South Africa, citing economic non-viability. The fields, Brulpadda and Luiperd, are located in a block off the country’s southern coast.
A subsidiary of TotalEnergies owns a 45% stake in the block, which spans 19,000 square kilometers (7,335 square miles) and is situated 175km (109 miles) off the South African coast. Despite the significant size and potential of these fields, TotalEnergies stated that they could “not be turned into a commercial development” due to the economic challenges of developing and monetizing these gas discoveries for the South African market.
Following TotalEnergies’ announcement, Qatar Petroleum, holding a 25% interest in the block, also declared its intention to withdraw, as reported by Africa Energy Corp, a Canadian oil and gas exploration company with a 10% stake. Another partner, CNR International, which owns 20% of the block, had already announced its departure earlier in July.
Africa Energy Corp indicated it would not withdraw from the project. According to a joint agreement, companies exiting the block will forfeit their stakes for free to those remaining. The company emphasized that the gas fields represent “the largest discoveries of natural gas resources in South Africa,” and if developed, could significantly contribute to the country’s energy transition away from coal-fired power plants.
However, the project has faced opposition from environmental groups concerned about the impact of deep-water drilling on the region’s biodiversity and local fishing communities.
