Seeking replacement investors for offshore blocks
South Africa aims to monetise gas discoveries
SOUTH AFRICA: The Department of Mineral Resources and Energy (DMRE) says that it is confident about attracting another suitable investor after the exit of TotalEnergies from the offshore blocks 11b/12b and 5/6/7.
Although still holding onto their exploration rights over Blocks Deep Water Orange Basin and Orange Basin Deep, Outeniqua South, as well as Block 3B/4B east of Deep Water Orange Basin, TotalEnergies issued a statement announcing their exit from several offshore blocks on Monday this week.
Despite the fanfare around the gas discoveries of Brulpadda and Luiperd, the company has confirmed that these would be “too challenging to economically develop and monetize these gas discoveries for the South African market.”
Such a statement may make it difficult for the country to attract the new investors it seeks to progress further drilling in these fields.
TotalEnergies acquired acquired participating interests in Block 3B/4B in March this year in a transaction that sees them now holding a 33% interest. The remaining interests are held by QatarEnergy (24%), Africa Oil SA (17%), Ricocure (19.75%) and Azinam (6.25%).
At the time, Kevin McLachlan, Senior Vice-President Exploration of TotalEnergies noted the success of exploratory drilling in Namibia and committed to ongoing effort in the Orange Basin.
2272