Clarksons on Africa Energy: “TotalEnergies reveals massive scale of its South African gas discoveries” (Block 11B/12B)

TotalEnergies provided details of the “massive scale” South Africa discoveries. The details come from Total´s filing to the South Africa authorities. It concerns block 11B/12B that is 10% owned by the Africa Energy. Until now we had only speculation of the deposit size. Now we have a formal confirmation from the block operator.

Very positive for Africa Energy

Friday’s Clarskons note on Block 11B/12B

TotalEnergies reveals massive scale of its South African harsh environment gas discoveries

The scale of TotalEnergies’ gas discoveries from 2018 and 2020 in South Africa, the Brulpadda and Luiperd, has for the first time been publicly revealed in documentation the operator recently filed to South African authorities.

In total, TotalEnergies plans to spend $3bn to exploit the findings. Combined, the two discoveries (which came through only two wells) is said to comprise resources of 4.5 Tcf of gas, of which 3 Tcf of this volume is contained in Luiperd. First gas is targeted in 2027 given that all government approvals are received. To our knowledge, both discoveries were drilled by Odfjell Drilling’s (ODL, Buy) harsh environment semi the Deepsea Stavanger.

Further, as reported by Upstream, it is said that these resources may be enhanced by a proposed four-well exploration and appraisal drilling campaign being considered by the operator. In our view, a harsh environment rig is by all likelihood required, as weather conditions at the location includes both rough waves and one of the strongest ocean currents in the world, making the area one of the most challenging areas of operation. This seems to be reflected in the operator’s contracting efforts, with TotalEnergies already having 270 days of options on Odfjell Drilling’s the Deepsea Mira for work in South Africa starting in August 2024 (which may be for the program exploration and appraisal program outlined above).

Further, in our view, the operator will likely prefer Odfjell to undertake work, as it already has successfully carried out operations in the rather ‘untraditional’ environment in South Africa. The Mira will soon
mobilize from Norway to Namibia to commence the firm term of the TotalEnergies contract

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