French multinational TotalEnergies has issued a stern warning to Pretoria, saying it could suspend its oil and gas exploration projects in South Africa due to repeated legal challenges stalling its operations.
Nicolas Terraz, the company’s President of Exploration & Production, slammed the “unacceptable delays” in the country’s permit process, emphasizing that the sluggish approvals are holding back project execution.
The warning highlights TotalEnergies’ growing frustration with ongoing lawsuits and regulatory hurdles that have disrupted its offshore activities. It also comes in the wake of several unfavorable court decisions.
In August, the Western Cape High Court revoked an environmental authorization that had allowed TotalEnergies and Shell to drill on block 5/6/7 off South Africa’s southern coast.
The court ruled that the initial impact assessment failed to properly evaluate climate risks and potential harm to nearby coastal communities. Since then, TotalEnergies says the regulatory process has become increasingly bureaucratic and uncertain, leaving new permit applications in limbo.
The company warned that these procedural bottlenecks could drive away foreign investors and weaken South Africa’s overall energy agenda.
The standoff exposes the growing conflict between South Africa’s energy goals and its environmental obligations. While the government views offshore resources as essential for reducing gas imports and advancing its energy transition, it continues to face pushback from environmental groups and coastal communities.
In May, TotalEnergies reaffirmed plans to begin offshore drilling next year, holding exploration rights across several key blocks, including Deep Water Orange Basin (DWOB), Orange Basin Deep (OBD), Outeniqua South, and 3B/4B, located east of DWOB.
However, in July 2024, the company announced its withdrawal from the 11B/12B gas block, citing a prolonged deadlock over gas monetization talks.
source: www.ecofinagency.com
African Energy Council