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TotalEnergies to Start Offshore Drilling in South Africa by 2026

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According to Mike Sangster, TotalEnergies’ Senior Vice President for Africa Exploration & Production, the company is preparing to begin offshore drilling in South Africa in 2026, pending final regulatory approvals.

Speaking at the Invest in African Energy Forum in Paris, Mr Sangster emphasized that the company aims to expand its energy operations in Africa. Therefore, South Africa is poised to play a central role in that vision.

The announcement comes amid significant legislative developments in South Africa’s oil and gas sector.

In April, the government published the draft regulations for the Upstream Petroleum Resources Development Act.

The regulation aims to create a more modern and investor-friendly oil and gas exploration and production framework.

In addition, the framework will provide policies for licensing, state participation, and production-sharing mechanisms. The goal is to make it easier for oil companies to operate in the country.

The upcoming African Energy Week (AEW) 2025 conference in Cape Town will provide a platform for key stakeholders to discuss the implications of these reforms.

TotalEnergies’ offshore oil and gas exploration can help South Africa to diversify its energy mix amid the ongoing energy crisis.

Establishing a Fit-for-Purpose Framework

The lack of a clear legal framework has hindered South Africa’s ability to attract sustained exploration activities for many years.

South Africa has long struggled with regulatory uncertainty, which has hampered exploration in the country. As a result, the Upstream Petroleum Resources Development Act aims to fix this issue.

The new Act aims to solve the issues by establishing clear licensing protocols, state participation, and production-sharing mechanisms. In addition, the Act will introduce more attractive fiscal terms as well.

TotalEnergies in South Africa

TotalEnergies has operated in South Africa since 1954. Initially, it began distributing petroleum products to consumers. Thus, TotalEnergies boasts a network of more than 500 retail sites and LPG distribution nationwide.

The company is also involved in solar and wind renewable energies. For instance, the Prieska solar power plant, which has been operational since 2016, supplies electricity to over 70,000 homes.

TotalEnergies will also develop a 120 MW solar plant and a 140 MW wind farm in the Northern Cape province. The solar plant will supply green electricity to Sasol’s Secunda site. The site is where Air Liquide operates the largest oxygen production site in the world.

In terms of Upstream exploration, TotalEnergies was involved in offshore gas exploration in South Africa. In March 2024, TotalEnergies and its partner QatarEnergy acquired participating interests in Block 3B/4B, offshore South Africa, from Africa Oil South Africa. However, by July 2024, it withdrew from Block 11B/12B and 5/6/7.

Total Energies entered Block 11B/12B in 2013 and made two gas discoveries, Brulpadda and Luiperd. Unfortunately, TotalEnergies could not economically develop the gas field.

In addition, exploration in offshore South Africa has been hampered by several court challenges by environmental activists who oppose fossil fuel exploration offshore. The Green Connection and Natural Justice have filed a judicial review application at the Western Cape High Court. The case challenges the environmental authorization granted to TotalEnergies EP South Africa (TEEPSA) for exploration in Blocks 5/6/7.

Therefore, TotalEnergies now seeks to explore Block 3B/4B, which lies on South Africa’s side of the Orange Basin. In August 2024, TotalEnergies officially became the offshore exploration Block 3B/4B operator in the Orange Basin.

The Orange Basin represents one of the last untapped frontiers capable of meeting South Africa’s energy demand.

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