TotalEnergies is proceeding with its production rights application. Total has applied for environmental authorization as part of the production right application for Block 11B/12B. It is a next step to production on the 11B/12B.
Fearnley Securities note from today
- TotalEnergies takes next step on Block 11B/12B
TotalEnergies has applied for environmental authorization as part of the production right application for Block 11B/12B which is now available for public comment that can be read here. It is positive for AEC which owns indirectly 10% of Block 11B/12B that TotalEnergies moves forward. On our estimates, Block 11B/12B has a NPV of USD 479m risked to AEC. The newly published document highlights that TEEPSA, in addition to bring on producing wells, intends to conduct further exploration on the block with both exploration and appraisal drilling that supports our value for the remaining prospects in the Paddavissie Fairway and Kloofpadda. The proposed development will allow South Africa, as one of top 20 global greenhouse gas emitters, to transition away from its reliance on coal. The next big trigger for the stock will be the disclosure of gas offtake term for Luiperd Phase 1 that we have modelled to USD 48 per boe.
LInk to the TotalEnergies environmental authorization filing:
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