French energy major TotalEnergies has announced plans to begin offshore drilling in South Africa next year, contingent on receiving the required regulatory approvals.
- TotalEnergies plans to initiate offshore drilling in South Africa contingent on regulatory approvals.
- The initiative aims to boost South Africa’s domestic energy supply and attract foreign investment.
- Challenges like legal disputes and technical difficulties affect South Africa’s offshore exploration prospects.
The development marks a potential milestone in South Africa’s bid to expand its oil and gas exploration footprint.
Mike Sangster, TotalEnergies’ Senior Vice President for Africa, revealed the company’s intentions during an industry conference on Tuesday.
He confirmed that TotalEnergies currently holds exploration rights over four offshore blocks in South African waters.
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If successful, the drilling operations could bolster the domestic energy supply and reduce dependence on fuel imports, while attracting further foreign investment.
Oil exploration in South Africa
TotalEnergies has made major offshore discoveries in the country, notably the Brulpadda and Luiperd fields in the Outeniqua Basin, southwest of Mossel Bay.
However, in July, the company announced plans to withdraw from Block 11B/12B off South Africa’s southern coast, citing commercial viability concerns.
The decision marked a major setback for the country’s drive toward energy independence, as the block contains South Africa’s largest-ever offshore gas discoveries.
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TotalEnergies has had a presence in South Africa since 1954, operating across the entire oil and gas value chain.
Despite its long-standing presence, the company and other energy investors have encountered growing challenges, including persistent court battles initiated by environmental groups, as well as prolonged bureaucratic delays.
These hurdles, along with the technical difficulties posed by the region’s rough seas and strong ocean currents, have contributed to waning investor interest in South Africa’s offshore oil and gas prospects.
