TotalEnergies and QatarEnergy International are withdrawing from Block 11B/12B off the southern coast of South Africa.
After entering the concession in 2013, TotalEnergies EP South Africa, as operator, made two large gas-condensate discoveries in 1,400-1,800 m of water in 2019 and 2020 on the Brulpadda and Luiperd prospects.
The partners had considered a phased development of the fields in the Paddavissie Fairway starting with an early production system on Luiperd, transporting the gas through infrastructure on an adjacent block to the onshore Mossel Bay complex.
But commercialization attempts stalled “as it appeared to be too challenging to economically develop and monetize these gas discoveries for the South African market,” TotalEnergies said.
The company has also decided to exit offshore exploration Block 5/6/7 where TotalEnergies EP South Africa has a 40% interest.
CNR International announced its planned departure from Block 11B/12B at the start of this month.
However, Vancouver-based Africa Energy Corp., which has an indirect interest in the block via its investment in Main Street 1549 (a 10% shareholder), said it planned to stay put.
“Despite the challenges and delays encountered so far…” Africa Energy said, “the Brulpadda and Luiperd discoveries are the largest discoveries of natural gas resources in South Africa and, if developed, could supply a significant portion of the country's energy needs as it seeks to transition away from coal-fired power plants.”
Subject to all relevant regulatory approvals, Main Street 1549 would assume a 100% interest in the block and would then focus on obtaining authorization for the production right and securing offtake customers.
