TotalEnergies applies for production license for two major offshore gas field discoveries in SA

TotalEnergies meets deadline for project that aims to reduce dependence on imported oil and gas.

TotalEnergies, the global energy firm, lodged its production license application for Block 11B/12B on 5 September before a deadline expired might have seen the oil giant forfeit its right to develop the two major Brulpadda and Luiperd gas field discoveries off South Africa’s southern coast.

Reducing dependence on imports

Development of the field represents a major milestone in South Africa’s quest to reduce its dependence on imported oil and refined petroleum products. However, new gas and oil projects are being challenged in courts amid environmental concerns.

“We congratulate operator TotalEnergies on filing the production right application for Block 11B/12B,” said Africa Energy President and CEO Garrett Soden.

Africa Energy owns 49% of the common shares of Main Street 1549, which in turn holds a 10% participating interest in Block 11B/12B. The block is operated by TotalEnergies EP South Africa BV.

This is a wholly owned subsidiary of TotalEnergies SE, which holds a 45% participating interest. Qatar Petroleum International Upstream LLC, a wholly owned subsidiary of QatarEnergy, and CNR International (South Africa) Limited hold 25% and 20% of the block respectively.

“This is an important milestone for the proposed Luiperd early production system. We look forward to finalizing the gas offtake terms,” said Soden.

Contributions to the economy

Block 11B/12B could make a direct annual contribution of at least USD 450 million to the South African government fiscus, Petroleum Agency South Africa CE Phindile Masangane told delegates at the 2^nd Annual Southern Africa Oil & Gas Conference 2022 at The Westin in Cape Town on 15 September.

South Africa is aiming to increasingly use gas in order to help reduce its carbon emissions and to create an indigenous supply.