Interest re-ignited in offshore opportunities

Oil major voices interest in South Africa

SOUTH AFRICA: TotalEnergies confirmed its intention launch an offshore drilling programme in South Africa next year following recent legislative developments that indicate the government’s commitment to reform the sector and provide more certainty for investors.

Speaking at the Invest in African Energy Forum in Paris Mike Sangster, the company’s SVP for Africa Exploration & Production emphasised the company’s ambition to expand its multi-energy strategy on the continent, with South Africa poised to play a central role in that vision.

For years, the lack of a clear and sector-specific legal framework has impeded South Africa’s ability to attract sustained exploration activity and unlock its offshore potential. The Upstream Petroleum Resources Development Act aims to rectify this by establishing transparent licensing systems, defining state and Black Economic Empowerment participation and clarifying production-sharing mechanisms.

Crucially, the Act seeks to create an enabling environment that balances investor interests with national development goals. It provides detailed guidance on the application and granting of exploration and production rights, introduces more predictable fiscal terms and offers mechanisms to manage environmental and social responsibilities.

By aligning South Africa’s regulatory framework with international best practices, the government is positioning the country to compete more effectively for operator capital, particularly as global exploration budgets become more selective and carbon-conscious.

Igniting Interest in the Orange Basin

South Africa’s offshore acreage, particularly in the Orange Basin, has been gaining momentum on the back of transformational discoveries in neighbouring Namibia. Within South African waters, the Brulpadda and Luiperd finds in Block 11B/12B remain the most commercially significant to date, estimated to hold more than 600 million barrels of oil equivalent.

While TotalEnergies has since exited the block, citing internal portfolio shifts, the company’s re-engagement with the broader South African market suggests continued belief in the basin’s long-term potential.

Last August, TotalEnergies officially became operator of offshore exploration Block 3B/4B, positioned southeast and on trend with neighbouring oil discoveries, including the company’s Venus discovery in Namibia.

The Orange Basin represents one of the last untapped frontiers capable of delivering large-scale oil and gas volumes. With a more supportive regulatory backdrop taking shape, South Africa is well-positioned to attract the kind of deepwater investment needed to de-risk its acreage and build out its domestic gas.

PHOTO: Speaking at the Invest in African Energy Forum in Paris Mike Sangster, the company’s SVP for Africa Exploration & Production emphasised the company’s ambition to expand its multi-energy strategy on the continent, with South Africa poised to play a central role in that vision.

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