TotalEnergies could make a significant contribution to South Africa’s public finances by making an annual contribution. The company’s contribution could amount to $457 million. Moreover, the benefits received by the country are not only reflected in the tax field.
Energy independence supported by TotalEnergies
TotalEnergies would support South Africa by feeding its GDP. The country would also collect the company’s direct tax contribution from royalties and primary taxes. This will reduce dependence on imported oil and refined products.
However, field operations are being litigated in court due to environmental concerns. The unbridled exploration of hydrocarbons in South Africa has had disastrous consequences for the environment. The active search for new deposits contributes to greenhouse gas emissions and threatens marine life.
TotalEnergies was in the process of applying for a production license for Block 11B/12B. The company hoped to avoid the expiration of the operating period. Otherwise, it would lose the right to develop the Brulpadda and Luiperd deposits.
The race for gas fields
The Petroleum Agency of South Africa (PASA) supports the country’s offshore gas potential. Bongani Sayidini, the operations manager, estimates South Africa’s capacity at 60 million cubic feet TCF. He adds about the TotalEnergies project:
“The discovered volumes can support 560 million standard cubic feet per day.”
In addition, they would provide a supply to the Mossel Bay liquid gas refinery. The latter was reducing its capacity to cope with raw material shortages. In addition, the excess gas produced by TotalEnergies would be used to fuel other power plants such asEskom‘s.
South Africa is showing its willingness to expand into offshore gas fields. As a result, a new well will open in Block 2B on the West Coast next month. In addition, the Gazania-1 well targets two other prospects of Eco Atlantic Oil & Gas and its partners.