TotalEnergies, South Africa, and the Quagmire of Offshore Exploration

French supermajor TotalEnergies finds itself at a crossroads in South Africa. Once considered a cornerstone of its southern African growth strategy, the country has become a proving ground for environmental litigation, judicial activism, and political uncertainty. The Western Cape High Court's recent ruling to rescind environmental approval for offshore exploration in Block 5/6/7 is the latest—and perhaps most decisive—blow.

- By Our Southern Africa Editor

The decision forces TotalEnergies back to the drawing board, requiring fresh studies, new consultations, and full disclosure of emergency plans. Civil society hails it as a constitutional victory. For the company, it raises the question: is South Africa worth the trouble?

Legal Roadblocks and Corporate Frustration

The ruling was scathing: TotalEnergies' Environmental Impact Assessment (EIA) failed to consider critical risks, including oil spills' socioeconomic impacts on small-scale fishers, climate implications, and meaningful public engagement. The company has the chance to remedy these deficiencies, but patience is wearing thin.

Patrick Pouyanné, TotalEnergies' CEO, has already warned analysts that South Africa's permitting process is "quite a little long." For a company fresh off world-class discoveries in neighboring Namibia, delays carry real costs. Each deepwater exploration well costs between $70 million and $100 million. With seven wells planned for drilling by 2026, Total's South African campaign could represent a $700 million investment—capital that may now be reconsidered.

Namibia's Gain, South Africa's Loss?