TotalEnergies has informed South Africa’s petroleum regulator of its intention to withdraw from the 11B/12B offshore gas field.
TotalEnergies discovered the first of two large gas finds in Block 11B and 12B offshore the southern coast in 2019, and the withdrawal is a setback for South Africa, which was banking on the gas to potentially supply an idle national gas-to-liquid refinery at Mossel Bay.
Talks over the gas price have stalled for years, while TotalEnergies has invested heavily to explore neighboring Namibia, a global exploration hotspot since TotalEnergies, Shell, and Galp hit new finds.
“The main reason (for the withdrawal) is the inability to secure a market for the gas,” the source told Reuters on Tuesday.
“They have not withdrawn their production right application (to 11B/12B),” added the source, who was not authorized to speak to the media.
TotalEnergies did not respond immediately to a request for comment.
TotalEnergies partnered with QatarEnergy in March to buy a stake in a license seeking oil and gas on the west coast of South Africa as part of plans to develop the Orange Basin in Namibia.
The Orange Basin, known for its abundant petroleum discoveries in Namibia, extends southward into South African waters.
