TotalEnergies Plans Major Offshore Drilling Campaign in South Africa

TotalEnergies has announced plans to drill up to seven exploration wells in the Orange Basin, which spans the waters of both South Africa and Namibia. This initiative aims to capitalize on the potential resources in the region following a significant discovery known as Venus, made offshore Namibia. The French energy giant is currently awaiting environmental authorization for the drilling campaign, which is expected to commence in 2026.

During a recent earnings call, Patrick Pouyanné, the chief executive of TotalEnergies, detailed the company’s strategy, noting the existence of several attractive licenses in close proximity to the border. “We have actually two or three prospects, and we are working in South Africa. The process to get all the authorizations is quite long, but we hope to begin to drill South Africa targets in 2026,” Pouyanné stated.

TotalEnergies is also engaged in discussions with Namibian authorities regarding the development of the Venus prospect. These negotiations have been protracted, attributed to Namibia’s relative newness in the oil sector and TotalEnergies being the first company to pursue a development project in the nation.

Competition and Challenges in the Region

The offshore drilling landscape is becoming increasingly competitive. Last month, Shell received environmental approval to drill up to five deepwater wells off South Africa’s west coast. Both Shell and TotalEnergies have made substantial discoveries in the same Orange Basin, heightening interest in the region’s untapped resources.

As exploration efforts ramp up, challenges remain. Bureaucratic hurdles and legal obstacles have previously hindered drilling activities in South Africa. The country is still grappling with the establishment of a robust domestic exploration and production sector.

In contrast, Namibia is considering additional incentives and financing options to attract international oil companies. This move aims to facilitate oil production plans offshore, fostering a more conducive environment for development compared to its South African counterpart.

TotalEnergies’ proposed campaign highlights the growing interest in the Orange Basin, which offers promising prospects for oil and gas exploration. As both companies navigate the regulatory landscape, the potential for significant resource discovery remains a focal point for the future of energy production in the region.