TotalEnergies has officially declared its exit from the Brulpadda and Luiperd exploration blocks off South Africa’s southern coast, where TotalEnergies EP South Africa holds a 45% stake.
Gas Discoveries at Brulpadda and Luiperd
In 2013, TotalEnergies entered Block 11B/12B and subsequently discovered two significant gas fields, named Brulpadda and Luiperd.
Partner Withdrawal and Strategic Decision
This decision follows a prior withdrawal by CNRI, a partner of TotalEnergies in Block 11B/12B.
TotalEnergies stated that progressing the block to production was deemed “too challenging to economically develop and monetize these gas discoveries for the South African market”.
Exit from Additional Offshore Exploration Blocks
Concurrently, TotalEnergies also announced its intention to exit offshore exploration Block 5/6/7, where it currently maintains a 40% interest.
Ongoing Exploration Rights
Despite these exits, TotalEnergies retains exploration rights with various partners in the Deep Water Orange Basin, Orange Basin Deep blocks off the west coast, Outeniqua South off the south coast, and Block 3B/4B, east of the Deep Water Orange Basin block.
Department of Mineral Resources and Energy’s Response
The Department of Mineral Resources and Energy (DMRE) acknowledged TotalEnergies’s announcement, expressing optimism that a new investor will be found to develop the gas discoveries.
“We are pleased that TotalEnergies is not completely withdrawing from oil and gas opportunities in South Africa, as they still hold exploration rights,” the department stated, emphasizing their commitment to engaging with key stakeholders to ensure the sector’s development and sustainability.