French oil major TotalEnergies has informed South Africa’s petroleum regulator of its intention to withdraw from its 11B/12B offshore gas field. However, a formal request has not yet been submitted, according to a source at Petroleum Agency SA cited by Reuters.
TotalEnergies discovered significant gas finds in Block 11B/12B off the southern coast in 2019. The potential gas supply was expected to revive the idle national gas-to-liquid refinery at Mossel Bay.
However, discussions over the gas price have stalled for years, leading to this decision.
“The main reason for the withdrawal is the inability to secure a market for the gas,” the source told Reuters. “They have not withdrawn their production right application to 11B/12B,” added the source, who was not authorized to speak to the media.
Earlier this year, TotalEnergies partnered with QatarEnergy to acquire a stake in a license for oil and gas exploration on South Africa’s west coast, aiming to develop the Orange Basin in Namibia.
The Orange Basin, where many of Namibia’s petroleum discoveries have been made, extends into South African waters.
