By: Ecofin agency

French multinational TotalEnergies has openly warned Pretoria that it may suspend its oil and gas exploration projects in South Africa, citing repeated legal challenges that have stalled its operations. According to reports published on Monday, October 6, by industry media, the group has threatened to halt its activities if delays persist.

Nicolas Terraz, TotalEnergies’ president of Exploration & Production, criticized what he called “unacceptable delays” in the approval process, saying they are slowing down project execution.

The warning reflects growing frustration within the company over mounting lawsuits and regulatory hurdles that have hindered its offshore operations. It also follows a series of unfavorable court rulings.

In August, the Western Cape High Court annulled an environmental authorization previously granted to TotalEnergies and its Anglo-Dutch partner Shell for offshore drilling on block 5/6/7 off South Africa’s southern coast.

The court found that the original impact study failed to adequately assess climate effects and potential harm to coastal communities. Since then, new permit applications have become bogged down in what the company describes as slow and uncertain bureaucracy.

TotalEnergies warned that such procedural obstacles could discourage foreign investment in South Africa’s oil sector and undermine the country’s broader energy strategy.

The situation underscores growing tensions between South Africa’s energy ambitions and environmental safeguards. The government sees offshore resources as key to reducing dependence on imported gas and supporting its energy transition. However, it continues to face resistance from environmental groups and coastal communities concerned about ecological impacts.

In May, TotalEnergies said it hoped to begin offshore drilling in South Africa next year. The company holds exploration rights in several blocks, including Deep Water Orange Basin (DWOB), Orange Basin Deep (OBD), Outeniqua South, and 3B/4B, located east of DWOB. In July 2024, it announced plans to exit the 11B/12B gas block, citing a prolonged stalemate in talks over gas monetization.