- The gas fields are considered the largest discoveries of natural gas resources in South Africa.
- Environmental groups have opposed the project, citing concerns about biodiversity and fishermen in the region.
TotalEnergies, a French energy company, announced on Monday that it is abandoning its interests in two offshore gas fields in South Africa, citing economic unviability.
The company’s subsidiary holds a 45% stake in the block where the Brulpadda and Luiperd fields are located.
According to TotalEnergies, the gas discoveries are not commercially viable due to the significant challenges and costs associated with developing and marketing them for the South African market.
The block, spanning 19,000 square kilometres (7,335 square miles), is located 175km (109 miles) off the South African south coast.
Qatar Petroleum, which holds a 25 per cent interest in the block, also announced its intention to withdraw from the project, said Africa Energy Corp, a Canadian oil and gas exploration company with a 10 per cent stake through a subsidiary.
Another partner, CNR International which owns 20 per cent of the block, had announced its departure earlier in July.
Africa Energy Corp said it did not intend to withdraw from the project and noted that under a joint agreement, companies that pull out of the block would give up their stakes for free to those that stay.
The company said the gas fields were “the largest discoveries of natural gas resources in South Africa.”
It added, “If developed, it could supply a significant portion of the country’s energy needs as it seeks to transition away from coal-fired power plants.”
Environmental groups have opposed the project, warning that drilling in the deep waters would threaten the region’s biodiversity and fishermen.
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