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

India-U.S. trade expands 8% amid talks on new bilateral trade deal

India’s bilateral merchandise trade with the United States grew by approximately 8% to surpass $106 billion in the ten months through January, a development that Indian officials say will be further bolstered by a proposed trade agreement between the two nations. This follows discussions between Prime Minister Narendra Modi…

India emerges as top investment destination as capital shifts from China

A significant shift is underway in global markets as investors withdraw billions of dollars from China’s economy, redirecting much of that capital toward India. Wall Street giants like Goldman Sachs Group Inc. and Morgan Stanley are endorsing India as the prime investment destination for the…

POSCO, Hyundai Steel consider U.S. expansion as tariffs hit exports

South Korean steelmakers are weighing their investment options in response to the latest U.S. tariffs on steel and aluminum imports, which took effect on Wednesday. The tariffs, set at 25%, apply broadly to all steel and aluminum imports and extend to a range of downstream metal products. While Canada, Brazil, Mexico, and South Korea are among the countries most affected, steelmakers worldwide are bracing for the broader impact.

POSCO Holdings, South Korea’s largest steelmaker, stated that it is focusing on high-value-added products and enhancing its cost efficiency. The company is also reviewing potential investments in upstream steel processes in the U.S. or India, though no final decisions have been made. Hyundai Steel, a competitor, is considering constructing a plant in the southeastern U.S. The company acknowledged that the increased tariffs pose a significant challenge for South Korea’s steel industry.

Stay informed

error: Content is protected !!