TotalEnergies Withdraws from South Africa Gas Fields

TotalEnergies, a French energy company, has announced its withdrawal from two offshore gas fields, Brulpadda and Luiperd, located off the southern coast of South Africa, citing economic unviability. The gas fields, considered the largest discoveries of natural gas resources in South Africa, are not commercially viable due to challenges in developing and marketing them for the local market. Qatar Petroleum, which holds a 25% stake, and CNR International, with a 20% stake, are also withdrawing from the project. Africa Energy Corp, which retains a 10% stake, intends to stay involved and believes the resources can still be developed commercially. Environmental groups have raised concerns about the potential impact of drilling on biodiversity and local fishing communities. The total area of the block spans 19,000 square kilometers and is located approximately 175 km off the South African coast.