French energy giant TotalEnergies announced on Monday that it is exiting two offshore gas fields off South Africa’s southern coast, citing economic challenges. The fields, known as Brulpadda and Luiperd, were discovered in a block where TotalEnergies holds a 45 percent stake. The company stated that the fields could not be commercially developed due to the high costs and complexities involved.
The block, covering 19,000 square kilometers (7,335 square miles) and located 175 kilometers (109 miles) off the coast, also saw Qatar Petroleum, which holds a 25 percent interest, and CNR International, with a 20 percent stake, decide to withdraw. CNR International had previously announced its departure earlier in July.
Africa Energy Corp, a Canadian oil and gas exploration company with a 10 percent stake, has confirmed it will remain involved in the project. According to a joint agreement, withdrawing companies will forfeit their stakes to the remaining partners. Africa Energy Corp described the gas fields as the largest discoveries of natural gas resources in South Africa and noted their potential to significantly contribute to the country’s energy needs, especially as South Africa moves away from coal-fired power.
Environmental groups have expressed strong opposition to the project, citing concerns about the potential impact on local biodiversity and fisheries from drilling activities.