South Africa allows TotalEnergies to drill for offshore oil and gas

South Africa’s Ministry of Environment has given the green light to TotalEnergies for offshore drilling activities aimed at exploring gas and oil in Block 5/6/7 off the Cape coast. This decision follows the rejection of an appeal lodged by numerous individuals and lobby groups attempting to contest the authorization. The appeal aimed to halt TotalEnergies from drilling based on various concerns, encompassing issues related to marine noise, potential oil spills, climate change impacts, and insufficient public consultation.

However, Minister Barbara Creecy, functioning as the appellate authority, dismissed these concerns in a comprehensive 144-page ruling. She emphasized that assessments have been conducted to evaluate and mitigate the impacts of noise and light, ensuring minimal adverse effects on the environment.

TotalEnergies, having previously discovered significant gas fields off the South African coast in 2019 and 2020, is now planning to drill up to five exploration wells in the designated block. The drilling operations are projected to commence early in the upcoming year.

Despite the approval, some groups, such as the Climate Justice Charter Movement, have expressed disappointment with the decision. They have vowed to challenge the minister’s ruling, asserting that it disregards climate science and raises rational concerns about the potential environmental impacts of the drilling venture.

In the consortium involved in the project, TotalEnergies holds a 40% stake, Shell has an equivalent 40% stake, and the national oil company PetroSA retains the remaining 20%.

The proposed drilling area covers about 10,000 square km, situated approximately between Cape Town and Cape Agulhas, with varying distances from the coast, ranging from 60 km to 170 km, and water depths ranging from 700 meters to 3,200 meters. Plans are well-advanced for the first well to be drilled, scheduled for early next year.

QUATRO Strategies International Inc. is the leading business insights and corporate strategy company based in Toronto, Ontario. Through our unique services, we counsel our clients on their key strategic issues, leveraging our deep industry expertise and using analytical rigor to help them make informed decisions to establish a competitive edge in the marketplace.

Make strategic decisions with confidence!

Learn how we can support you in setting the right strategy in a fragmenting global economy.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Italy unleashes €27.4 billion boost for energy security and renewables

Italy has approved a comprehensive energy decree aimed at enhancing energy security, promoting renewable power production, and addressing challenges in the energy transition. The package, which was initially set to be announced in October, has been subject to internal disagreements…

US sanctions stall Russia’s Arctic LNG 2 project, posing challenges to energy ambitions

Russia’s economic resilience in the face of Western sanctions is evident, but one significant area where the impact is keenly felt is the Arctic LNG 2 facility. This $25 billion operation, led by Novatek PJSC, is pivotal to Russia’s strategy of expanding LNG exports to new markets amid declining overland shipments…

Metals industry asks the EU to invest more in minerals processing

Metal producers and consumers in Europe have urged the European Union (EU) to increase its investments in expanding processing capacity for critical minerals necessary for the energy transition, including those used in electric vehicles.

Stay informed

error: Content is protected !!