TotalEnergies withdraws from Offshore Gas Blocks in South Africa

The French energy giant announces its withdrawal from South Africa's offshore gas blocks 11B/12B and 5/6/7, a symbolic decision with varying impacts on the sector and the environment.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

TotalEnergies has announced its withdrawal from two offshore gas blocks off the coast of South Africa.
The blocks concerned, 11B/12B and 5/6/7, had revealed significant natural gas discoveries.
This decision, while welcomed by environmentalists, is a major step forward for TotalEnergies, raises economic issues for South Africa.

Development and value-added challenges

Block 11B/12B, covering 19,000 km² with depths ranging from 200 to 1,800 meters, has led to the discovery of two major gas fields at Brulpadda and Luiperd, located in the Outeniqua Basin, 175 km offshore.
The French group held a 45% interest in this block via its subsidiary TotalEnergies EP South Africa, in partnership with Qatar Petroleum (25%), CNR International (20%) and the South African consortium Main Street 1549 (10%).

Environmental impact and reactions

The project drew environmental criticism, notably from the NGOs Bloom and The Green Connection, who denounced the risks to local fishermen and marine biodiversity.
The area is a key migration and breeding ground for marine mammals such as whales.
Bloom sees TotalEnergies’ withdrawal as a victory for the climate and biodiversity, reducing potential CO2 emissions.

Economic and technical consequences

Independent analyst Thierry Bros points out that South Africa has lost an opportunity to monetize its gas, reinforcing its dependence on coal.
Technical and financial difficulties, notably the inability to agree a gas price with PetroSA, also weighed in the balance.
Difficult weather conditions and strong marine currents make exploitation costly and complex.

Gazprom’s entry and the geopolitical context

A decisive factor in the French giant’s withdrawal could be the South African Minister of Energy’s award of the project to re-commission the country’s main gas-fired power station to Gazprom in December 2023.
Due to international sanctions against Russia, the company could not risk collaborating with Gazprom, according to Bloom’s Swann Bommier.

Future prospects

Despite these withdrawals, the multinational continues to operate in four other offshore exploration licenses in South Africa, including one recently acquired in Block 3B/4B.
This series of withdrawals reflects the challenges faced by energy companies in developing new projects in a complex environment subject to multiple pressures, ranging from economic considerations to environmental issues.
The Group’s decision highlights the major obstacles to the commercialization and development of energy resources in certain regions of the world.
The French giant’s withdrawal marks a significant turning point for the industry and the ongoing energy transition, potentially influencing the future strategies of other players in the sector.

Daily winter demand spikes are pushing Britain’s gas system to rely more on liquefied natural gas and fast-cycle storage, as domestic production and Norwegian imports reach seasonal plateaus with no room for short-term increases.
Rising terminal capacity and sustained global demand, notably from China and Europe, are driving U.S. ethane exports despite new regulatory uncertainties.
The United States has called on Japan to stop importing Russian gas, amid rising tensions over conflicting economic interests between allies in response to the indirect financing of the war in Ukraine.
Australian group Santos lowers its annual production forecast after an unplanned shutdown at the Barossa project and delayed recovery in the Cooper Basin.
VoltaGrid partners with Oracle to deploy modular gas-powered infrastructure designed to stabilise energy use in artificial intelligence data centres while creating hundreds of jobs in Texas.
GTT, Bloom Energy and Ponant Explorations Group launch a joint project to integrate LNG-powered fuel cells and a CO₂ capture system on a cruise ship scheduled for 2030.
Storengy has launched its 2025/2026 campaign to sell gas storage capacity over four years, targeting the commercialisation of nearly 100 TWh by 2030, with over 27 TWh available starting in 2026-27.
The US government has withdrawn its proposal to suspend liquefied natural gas export licences for failure to comply with maritime requirements, while maintaining a phased implementation schedule.
Soaring electricity demand in Batam, driven by new data centres, leads INNIO and MPower Daya Energia to secure 80 MW and launch a five-year maintenance programme.
Tamboran has completed a three-well drilling campaign in the Beetaloo Sub-basin, with 12,000 metres of horizontal sections prepared for stimulation and maintenance ahead of the commercial phase.
Valeura Energy partners with Transatlantic Petroleum to restart gas exploration in the Thrace basin, with testing and drilling planned this quarter in deep formations.
Calpine Corporation has finalised a public funding agreement to accelerate the construction of a peaking power plant in Freestone County, strengthening Texas’s grid response capacity during peak demand periods.
Naftogaz urges the European Union to use Ukraine’s gas storage capacity as part of a strategic reserve system, while calling for the end of storage filling obligations after 2027.
Spanish gas infrastructure operator Enagás is in advanced talks to acquire the 32% stake held by Singapore’s sovereign wealth fund GIC in Terega, valued at around €600mn ($633mn), according to sources familiar with the matter.
BP has awarded Valaris a $140mn drilling contract for a Mediterranean offshore campaign aimed at reinforcing Egypt’s declining gas output since 2021.
Egypt’s petroleum ministry will launch 480 exploration wells by 2030 with investments exceeding $5.7bn, aiming to revive production and reduce reliance on imports.
Faced with declining domestic consumption, Japanese liquefied natural gas (LNG) importers are ramping up commercial optimisation strategies and favouring shorter contracts to protect profitability.
European inventories curbed price declines as liquefied natural gas (LNG) supply expands and demand stays weak. Cargo arbitrage favours Europe, but winter will determine the equilibrium level. —
Sonatrach and Midad Energy North Africa signed a production-sharing hydrocarbon contract in the Illizi South perimeter, involving a total investment estimated at $5.4bn for exploration and exploitation of the site.
Kuwait Petroleum Corporation annonce une découverte majeure dans la zone offshore avec le champ de Jazah, soutenant les efforts publics d’investissement dans les infrastructures énergétiques nationales.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.