TotalEnergies has notified South Africa’s petroleum regulator of its intention to withdraw from the 11B/12B offshore gas field.
In 2019, TotalEnergies discovered two significant gas deposits in Block 11B and 12B off the southern coast of South Africa.
The decision to withdraw is a significant setback for the country, which had hoped to utilize the gas to supply the dormant national gas-to-liquid refinery in Mossel Bay.
Negotiations over gas pricing have stalled for years, while TotalEnergies has shifted its focus and investment to neighboring Namibia, a global exploration hotspot where TotalEnergies, Shell, and Galp have made new discoveries.
“The main reason for the withdrawal is the inability to secure a market for the gas,” a source told Reuters on Tuesday.
The source also clarified that TotalEnergies has not withdrawn its production right application for Block 11B/12B.
TotalEnergies did not immediately respond to a request for comment.
In March, TotalEnergies partnered with QatarEnergy to acquire a stake in a license for oil and gas exploration on South Africa’s west coast, as part of their plans to develop the Orange Basin in Namibia.
The Orange Basin, renowned for its rich petroleum discoveries in Namibia, extends southward into South African waters.
