Development of French energy major TotalEnergies’ Block 11B/12B offshore gas field is expected to contribute up to $457 million per year towards South Africa’s government revenues, creating new opportunities for industrialization and socioeconomic growth on the back of energy independence.
“This is not just the overall gross domestic product contribution but is the direct fiscal contribution from the royalties as well as the primary taxes,” stated Phindile Masangane, Chief Executive at the Petroleum Agency of South Africa (PASA).
Development of Block 11B/12B– comprising the development of the Brulpadda and Luiperd gas condensate fields, discovered in 2019 and 2020, respectively – represents a critical opportunity for the southern African country to diminish its reliance on imported oil and refined petroleum products.
Having filed for its production license application for Block 11B/12B on 5 September, phase one of the supermajor’s deepwater field development is expected to cost an estimated $2 billion, with first gas expected in 2027.
“Discovered volumes can sustain 560 million standard cubic feet per day,” added Bongani Sayidini, PASA Chief Operations Officer.
Situated within the Outeniqua Basin, approximately 175km off the southern coast of South Africa, Block 11B/12B covers an area of 18,734km2 in water depths of between 200 and 1,800 meters.
With an estimated 60 trillion cubic feet of underexplored offshore gas prospects, South Africa’s gas potential could serve to alleviate the country’s energy woes, with excess gas holding the potential to supply converted coal-fired powerplants as well as the nation’s proposed 3,000 MW gas-fired power plant.
TotalEnergies is the operator of Block11B/12B, with a 45% interest, along with joint venture partners, state-owned petroleum company, Qatar Petroleum (25%); independent crude oil and natural gas producer, Canadian Natural Resources (20%); and the South African consortium, Main Street (10%).