Africa Energy the last man standing as TotalEnergies quits offshore gas finds

Africa Energy Corp is the only party retaining an interest in SA's first and only major offshore gas. However, it is confident the discoveries can be commercially developed, despite 100-year-old oil and gas major TotalEnergies concluding otherwise.On Monday, TotalEnergies announced it would withdraw from block 11B/12B off the coast of Mossel Bay, Western Cape, in which it holds a 45% interest.The oil and gas major said that the two large gas discoveries made there – Brulpadda and Luiperd – could 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 news came amid mounting speculation of TotalEnergies' exit after another stakeholder, Canadian Natural Resources International (CNRI), with a 20% stake in the block, announced its plans to exit in early July.QatarEnergy, which holds a 25% interest, has also now provided notice of its divestment, while Africa Energy Corp has confirmed its intention to remain invested.TotalEnergies has also decided to withdraw from Block 5/6/7 off the coast of Cape Town, where its South African subsidiary holds a 40% interest, but the company continues to hold stakes in deep water blocks offshore of South Africa, where the bulk of the Orange Basin extends.Securing approvalAs the 100% owner of Block 11B/12B, Main Street 1549 will be focused on securing the block's production right approval as well as offtake customers, Africa Energy said. When it comes to offtake, industry experts and insiders have noted the defective design of government's gas-to-power programme as a likely driver behind TotalEnergies' decision to exit the block."The existing Gas to Power Request for Proposal (RFP) effectively stopped 11B/12B from bidding, by virtue of a load factor ranging between 40% and 75%, with a targeted drop down to 25% by year five," said Paul Eardley-Taylor, Standard Bank's head of Southern African Oil & Gas, referring to a measure of electricity a plant must produce relative to its maximum."This is operationally non-doable for deep water offshore gas. It will be very interesting to see if the amended RFP, now due 25 March, will allow 11B/12B to be able to bid a power plant at Mossel Bay."

Africa Energy the last man standing as TotalEnergies quits offshore gas finds

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Namibian Sun 2025-12-08

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Africa Energy the last man standing as TotalEnergies quits offshore gas finds

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Namibian Sun 2025-12-08

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