TotalEnergies ditches 'too challenging' Brulpadda, Luiperd discoveries
Two other partners will also exit
TotalEnergies has confirmed it will exit its 45% stake in a block offshore South Africa where it made two major gas discoveries.
TotalEnergies has confirmed it will exit its major gas discoveries off the coast of South Africa because it is "too challenging" to develop and monetise the finds for the country.
In a press release issued yesterday, the French multinational oil and gas giant announced it would withdraw from block 11B/12B off the coast of Mossel Bay, in which it holds a 45% interest. "TotalEnergies entered into Block 11B/12B in 2013 and made two gas discoveries, Brulpadda and Luiperd, which could, however, not be turned into a commercial development as it appeared to be too challenging to economically develop and monetise these gas discoveries for the South African market," the company said in the statement.
The news comes a few weeks amid mounting speculation that TotalEnergies would exit block 11B/12B after another stakeholder, Canadian Natural Resources International (CNRI), with a 20% stake in the block, announced its plans to exit.
In terms of the joint operating agreement, the other stakeholders had 30 days to also indicate if they intend to exit. QatarEnergy International, which holds a 25% interest, has also now provided notice of its exit.
Stakes assigned 'free of charge'
That leaves just the Toronto-listed Africa Energy Corp, which holds 10% through Main Street 1549, and which has confirmed its intention to remain invested in the block.
In terms of the joint operating agreement, the withdrawing parties cannot sell their interests.
Rather, their stakes are assigned free of charge to each of the non-withdrawing partners in proportion to their interest. TotalEnergies said it has also decided to withdraw from Block 5/6/7 offshore of Cape Town where its South African subsidiary holds a 40% interest.
Insiders with intimate knowledge of the developments previously told News24 that TotalEnergies has grown deeply unhappy over the lack of support from the South African government for the Brulpadda and Luiperd discoveries. The inability to secure an offtake agreement with the state-owned PetroSA had also been discouraging.
TotalEnergies still has interests in South Africa, and in March, it announced that together with partner QatarEnergy, it had acquired participating interests in Block 3B/4B, 200 kilometres offshore that country's western coast.
- FIN24
In a press release issued yesterday, the French multinational oil and gas giant announced it would withdraw from block 11B/12B off the coast of Mossel Bay, in which it holds a 45% interest. "TotalEnergies entered into Block 11B/12B in 2013 and made two gas discoveries, Brulpadda and Luiperd, which could, however, not be turned into a commercial development as it appeared to be too challenging to economically develop and monetise these gas discoveries for the South African market," the company said in the statement.
The news comes a few weeks amid mounting speculation that TotalEnergies would exit block 11B/12B after another stakeholder, Canadian Natural Resources International (CNRI), with a 20% stake in the block, announced its plans to exit.
In terms of the joint operating agreement, the other stakeholders had 30 days to also indicate if they intend to exit. QatarEnergy International, which holds a 25% interest, has also now provided notice of its exit.
Stakes assigned 'free of charge'
That leaves just the Toronto-listed Africa Energy Corp, which holds 10% through Main Street 1549, and which has confirmed its intention to remain invested in the block.
In terms of the joint operating agreement, the withdrawing parties cannot sell their interests.
Rather, their stakes are assigned free of charge to each of the non-withdrawing partners in proportion to their interest. TotalEnergies said it has also decided to withdraw from Block 5/6/7 offshore of Cape Town where its South African subsidiary holds a 40% interest.
Insiders with intimate knowledge of the developments previously told News24 that TotalEnergies has grown deeply unhappy over the lack of support from the South African government for the Brulpadda and Luiperd discoveries. The inability to secure an offtake agreement with the state-owned PetroSA had also been discouraging.
TotalEnergies still has interests in South Africa, and in March, it announced that together with partner QatarEnergy, it had acquired participating interests in Block 3B/4B, 200 kilometres offshore that country's western coast.
- FIN24
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