TotalEnergies fights to explore SA for gas, oil

TotalEnergies and the government have decided to oppose a bid by environmental groups Natural Justice and The Green Connection to set aside the government’s decision to grant the French multinational energy major the right to drill offshore for gas and oil.

The environmental groups have dragged TotalEnergies and the ministers of forestry, fisheries & the environment, and mineral resources & energy to court in their official capacities to set aside a decision to grant an environmental authorisation to the company to conduct exploratory drilling off the southwest coast of SA between Cape Town and Cape Agulhas.

Business Day understands that the government departments and TotalEnergies have informed the environmental lobby groups that they will oppose their application, first announced in March.

The grounds put forward by The Green Connection and Natural Justice for the review application are that the government neglected to take into account the socioeconomic

effects on local fisheries of a potential oil spill.

The entities said that the state ignored the climate change implications associated with oil or gas usage, and that they were concerned about the lack of a proper evaluation of oil spill blowout contingency plans.

The Green Connection and Natural Justice charge that the government did not do justice to the requirements of the Integrated Coastal Management Act, and ignored the effects of the drilling activities extending to Namibia and international waters.

“We do not agree that a French oil company should be allowed to come here to plunder and destroy our ocean for oil and gas, which could also devastate the livelihoods of the small-scale fishers who depend on it,” said The Green Connection’s Neville van Rooy.

“We are also concerned with the ongoing onslaught of offshore oil and gas proposals [which indicate] that our government does not seem to be taking its commitment to the Paris Agreement very seriously.”

TotalEnergies discovered two huge gas fields off SA in 2019 and 2020.

The company’s area of interest in the block covers about 10,000km². TotalEnergies is the operator with a 40% stake, while British multinational Shell owns the other 40% and national oil company PetroSA the remaining 20%.

Melissa Groenink-Groves from Natural Justice said the organisation was duty bound to oppose the mooted exploration work.

“We cannot stand idly by as the government and policymakers disempower the people and communities who stand to be directly impacted by potential negative ecological consequences of the proposed exploratory drilling,” said Groenink-Groves.

“Our objective remains the conservation and protection of our coastal resources, safeguarding of the livelihoods of coastal communities and the promotion of meaningful public participation.”

In an unrelated matter, TotalEnergies and partner QatarEnergy recently signed an agreement to acquire participating interests in Block 3B/4B offshore SA from Africa Oil SA and Ricocure. The deal will see TotalEnergies hold a 33% participating interest in Block 3B/4B and assume operatorship, while QatarEnergy would hold a 24% interest. Africa Oil SA will retain a 17% interest, Ricocure 19.75% and Azinam (6.25%).

The transaction is subject to final approvals from the authorities. The project is located within the prolific Orange basin, 200km off the western coast of SA. Block 3B/4B is adjacent to the block operated by TotalEnergies with QatarEnergy and Sezigyn.

TotalEnergies has been present in SA since 1954. The company boasts a network of 550 retail sites, a nationwide liquefied petroleum gas distribution network, and solar and wind renewable energy sites, including the Prieska solar power plant.

WE DO NOT AGREE THAT A FRENCH OIL COMPANY SHOULD BE ALLOWED TO COME HERE TO PLUNDER AND DESTROY OUR OCEAN FOR OIL AND GAS …