General Thoughts, page-4463

Despite spending US$400 million, TotalEnergies exiting SA block to focus on the Orange Basin...

TotalEnergies to exit gas discoveries offshore South Africa to focus on Namibian exploration

"TotalEnergies SE plans to exit its discoveries of gas-condensate offshore South Africa to prioritise exploration in other areas closer to Namibia, according to people familiar with the matter. The French giant braved one of the fastest ocean currents in the world to drill off South Africa’s coast, spending at least US$400 million to find an estimated 1 Bboe at the Brulpadda field in 2019. It had further success at the Luiperd well the following year, but neither discovery has progressed to development.

TotalEnergies plans to relinquish the license for Block 11B/12B because it doubts whether the complex deepwater 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 offshore 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."