TotalEnergies EP South Africa, a subsidiary of French energy giant TotalEnergies, is considering the best way forward regarding its share in the block offshore South Africa, as one joint venture partner withdraws its interest.
CNR International (South Africa), a subsidiary of Canadian Natural Resources (CNR), has provided a notice to the joint venture partners that it will withdraw from its 20% interest in the block 11B/12B, located offshore the Republic of South Africa.
Under the joint agreement, the other parties to the joint venture may advise whether or not they will also withdraw within 30 days. Withdrawing parties assign their interest free of charge to each of the non-withdrawing partners in proportion to the interest of non-withdrawing partners.
CNR’s withdrawal from its 20% interest is subject to all relevant regulatory approvals by South African authorities.
Aside from the CNR, the partners in the block 11B/122 include TotalEnergies, via its TotalEnergies EP South Africa, which acts as the operator holding 45% share, QatarEnergy with 25% share, and Africa Energy Corp, which holds 10% stake through its investment in Main Street.
Africa Energy Corp said that it has been advised that TotalEnergies EP South Africa is currently reviewing its options with regards to its 45% interest in Block 11B/12B.
However, Africa Energy Corp does not plan to withdraw from its interest in Block 11B/12B. The company believes that natural gas will play a critical role in South Africa’s energy transition, and the use of indigenous gas from the Block 11B/12B discoveries are currently the most material domestic supply option in South Africa.
The Block 11B/12B is located in the Outeniqua Basin, around 175 kilometers off the southern coast of South Africa, and covers an area of 19,000 square kilometers with water depths ranging from 200 to 1,800 meters.
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