GARDEN ROUTE NEWS - TotalEnergies announced its exit from the offshore Block 11B/12B, withdrawing its 45% interest in the discovered gas and condensates in the area in a statement on Monday, 29 July.
The block is between 75km and 120km offshore from the south coast between Mossel Bay and Cape St Francis.
The statement noted that it is also withdrawing its 40% interest from the offshore exploration Block 5/6/7, located offshore between Cape Town and Cape Agulhas.
It stated that its decision follows that of its joint partner, CNR International (South Africa) Limited, to withdraw from Block 11B/12B. CNR International held a 20% interest in the block.
"TotalEnergies entered into Block 11B/12B in 2013 and made two gas discoveries, Brulpadda and Luiperd, which could not be turned into a commercial development as it appeared to be too challenging to economically develop and monetise these gas discoveries for the South African market," read the statement.
One of the other joint venture partners in Block 11B/12B, Africa Energy Corp., which holds 10% interest through its investment in Main Street, noted in a statement today, Monday 29 July, that they had received notice that TotalEnergies and CNR International were to withdraw their interest as well as another joint venture partner, QatarEnergy International. Qatar Energy held 25% interest in the block.
Africa Energy Corp. stated it would not be withdrawing its interest.
"Despite the challenges and delays encountered so far, the company (Africa Energy Corp.) remains confident that the Block 11B/12B resources can be commercially developed," read the statement.
"The Brulpadda and Luiperd discoveries are the largest discoveries of natural gas resources in South Africa and if developed could supply a significant portion of the country's energy needs as it seeks to transition away from coal-fired power plants," it noted.
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