Offshore gas finds: Nersa says TotalEnergies staying 'for now'

TotalEnergies plans to stay invested in its major gas discoveries off the southern coast of South Africa, an official at the National Energy Regulator of South Africa says.Speaking in passing during a meeting last Thursday, Thulebona Nxumalo, Nersa head of piped gas, said the regulator had reached out to TotalEnergies for clarification following media reports that it was considering exiting its interest in blocks 11B/12B. Two significant offshore gas condensate finds were made at the block, the Brulpadda and Luiperd wells, respectively."We contacted them to try and get clarification about what is it that is happening there. And what they indicated is that they had initially planned to exit, but following engagements that they&#039;ve had with government and other stakeholders, they&#039;ve decided to stay. So, it sounds like they will be staying for now on that Brulpadda project," Nxumalo said. ChallengesA US$400 million investment in exploration has yielded two major discoveries there: a one billion barrels equivalent gas find at the Brulpadda well in 2019, followed by another major discovery at the nearby Luiperd well in 2020.Insiders with intimate knowledge of the developments said TotalEnergies has grown unhappy over the lack of support from the South African government for the Brulpadda and Luiperd discoveries, which will require another US$3-to-US$4 billion investment to be developed. Critical offtake negotiations with PetroSA – a state-owned company with a mothballed gas-to-liquids refinery near the gas finds – have stalled. Other industry experts point out that the terrain is simply too technically difficult, as the ultra-deep water and strong currents make the development of the of the Brulpadda and Luiperd discoveries among the most challenging in the world.For these gas finds to be successfully developed, it will require the skills of a seasoned offshore operator like TotalEnergies.TotalEnergies has declined to comment. Nersa had not officially responded to questions by deadline.The speculation follows one of the block partners, Canadian Natural Resources International (CNRI), which holds a 20% stake, informing stakeholders of its plans to divest, meaning others must indicate whether they will exit as well.-NEWS24

Offshore gas finds: Nersa says TotalEnergies staying 'for now'

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