BizNews on the Total pivot from lower south africa Outeniqua Basin to Orange Basin / Namibia;
TotalEnergies plans to relinquish the license for Block 11B/12B because it doubts whether the complex deep-water finds can be made commercially viable, given South Africa’s small gas market, said one of the people, who asked not to be named as the information isn’t public. The company will concentrate instead on exploring the Orange Basin, located further north on the Atlantic coast of South Africa near promising oil discoveries in Namibian waters, the people said. In March, the French oil major agreed to buy a stake in the 3B/4B offshore block in the South African part of the Orange basin, where it already owns other exploration rights together with various partners. It’s currently working on the development of a first oil project in Namibian waters.A spokesperson for TotalEnergies declined to comment. An exit from the discoveries would be a blow to South Africa, which lacks domestic sources of oil and gas. Potential production from the 11B/12B fields had been earmarked in plans to help the country move away from a dependence on coal and provide feedstock for state-owned PetroSA’s 45,000-barrel-a-day gas-to-liquids plant that depends on other depleted fields nearby. South Africa has struggled to bring oil and gas developments onstream in a timely manner amid legislative uncertainty. The passage of a new hydrocarbon law awaited by explorers has dragged on for years. At the same time, environmental groups have stepped up campaigns to block seismic surveys and other activity planned by Shell Plc and other companies.
PCL Price at posting:
2.1¢ Sentiment: Hold Disclosure: Held
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