TotalEnergies Announced Withdrawal from South African Gas Fields

SEATTLE (Oil Monster):  France-headquartered energy major TotalEnergies announced its decision to withdraw from two offshore gas fields in South Africa. The decision follows the assessment by the company which suggested that these projects are not economically viable for the company.

The company will quit Brulpadda and Luiperd fields in a block off the country's southern coast, in which the subsidiary of it owns 45% stake. In a note, the company said that these discoveries appear to be too challenging for development, economically.

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Total Energies had spent around $400 million in drilling activities in the region. It had discovered approximately 1 billion barrels equivalent of light liquid hydrocarbons at the Brulpadda field. It had reported further success at the Luiperd well in 2020. However, both these failed to progress to development.

Qatar Petroleum, which holds 25% stake in the block, had earlier announced its decision to withdraw from the project. Another stakeholder, CNR International, which holds 20% stake, too had decided to quit earlier this month.

The remaining 10% stake in the block is held by a subsidiary of Africa Energy Corp, a Canadian oil and gas exploration company, which stated that it does not intend to withdraw from the project, saying that the gas fields were the largest discoveries of natural gas resources in the country.