Cape Town — The Department of Mineral Resources and Energy (DMRE) says it has noted the decision by TotalEnergies to exit parts of the country and is pleased that it is not leaving entirely.
TotalEnergies announced that it was withdrawing from two offshore gas fields in South Africa, as it felt it was no longer economically viable.
It said the company could not be turned into a commercial development and it appeared too challenging to economically develop and monetise the gas discoveries in the South African market, according to AFP.
In a statement, the DMRE aknowledged TotalEnergies announcement to exit offshore blocks 11b/12b and 5/6/7.
The department said it was confident that a suitable investor will come on board and monetise the gas discoveries. It said it was pleased that the French company was not completely leaving South Africa.
“Additionally, we are pleased that TotalEnergies is not entirely leaving oil and gas opportunities in South Africa as they still hold exploration rights over Blocks Deep Water Orange Basin and Orange Basin Deep, Outeniqua South, and recent entry in Block 3B/4B east of Deep Water Orange Basin,” it said.
The Department remains committed to the exploration of the country’s oil and gas resources and will intensify engagements with key role players to ensure the development and sustainability of the sector.
The Department of Mineral Resources and Energy (@DMRE_ZA) has issued a statement on @TotalEnergiesZA‘
announcement to exit from offshore blocks 11b/ 12b and 5/6/7. https://t.co/UrcPlq53nK— Department of Mineral Resources and Energy (@DMRE_ZA) July 29, 2024
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Compiled by Matthew Petersen
