TotalEnergies has confirmed that it is abandoning South Africa’s only offshore gas discovery, leaving the Petroleum Oil and Gas Corporation of South Africa Mossel Bay gas-to-liquid fuel plant idle.on Monday, 29 July 2024, TotalEnergies said the decision to withdraw from the site — Block 11B/12B — follows the withdrawal of its partner CRNI.
However, it said the discoveries ended up being too challenging to develop commercially and monetise for the South African market. “PetroSA’s gas-to-petrol plant remains idle, and Eskom cannot convert its expensive diesel plants to gas,” he“Another own goal by mineral and petroleum resources minister Gwede Mantashe, who instead of facilitating this development allowed PetroSA to contract notorious politically-connected Lawrence Mulaudzi to raise finance for offshore gas, but whose company has now been liquidated.”
PetroSA awarded the tender to finance and refurbish its offshore gas infrastructure to Equator Holdings in December 2023.Mulaudzi was potentially using the deal for speculative purposes by shopping around for funding from anyone willing to invest, and “possibly securing a cut for himself”.“The granting of the R21-billion tender to Equator Holdings was irregular as they did not meet the financial and technical requirements specified in the tender call for expressions of interests,” said Mileham.
Mileham said PetroSA ignored a Promotion of Access to Information Act application the DA submitted regarding the deal with Equator Holdings.