GARDEN ROUTE NEWS - CNR International (South Africa) Limited issued a notice to its joint venture partners that it will withdraw its 20% interest from gas discoveries off the south coast of South Africa.
Since then it has been reported that TotalEnergies SE plans to withdraw its 40% interest from the area.
Articles by Bloomberg and Reuters, published on their websites on 2 July stated that, according to anonymous sources with knowledge on the matter, TotalEnergies plans to exit its discoveries and relinquish its licence for Block 11B/12B.
According to the article by Bloomberg's Francois De Beaupuy and Paul Burkhardt, which BusinessTech also published, the exit comes due to the company doubting the commercial viability of its finds, especially in South Africa's gas market.
The Reuters article stated that the media house had spoken to an anonymous source at Petroleum Agency SA (PASA), who said it had notified the regulator it intends to withdraw.
Mossel Bay Advertiser sent queries to TotalEnergies and PASA.
TotalEnergies spokesperson Stéphanie Dezaunay said the company "doesn't comment on the matter".
PASA referred the Advertiser to TotalEnergies for comment.
Africa Energy Corp.
However, a statement by Africa Energy Corp. - one of the partners in the offshore blocks - read that it had been advised that TotalEnergies is currently reviewing its options with regards to its 45% interest in Block 11B/12B.
Image: Sourced/Africa Energy Corp
It also stated that another partner in the offshore block, CNR International (South Africa) Ltd, "provided notice to the joint venture partners that it will withdraw from its 20% interest in accordance with the joint operating agreement".
It read that Africa Energy, which holds 10% interest through its investment in Main Street, does not intend to withdraw.
"The Company (Africa Energy) 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," read the statement.
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