South Africa: TotalEnergies to Drill in 2026, Regulatory Reform Gains Momentum

Zawya

20-05-2025

TotalEnergies is preparing to begin offshore drilling in South Africa in 2026, pending final regulatory approvals, according to Mike Sangster, the company's SVP for Africa Exploration&Production. Speaking at the Invest in African Energy Forum in Paris, Sangster emphasized the company's ambition to expand its multi-energy strategy on the continent, with South Africa poised to play a central role in that vision.
The announcement coincides with significant legislative developments in South Africa's oil and gas sector. In April, the government published the draft regulations for the Upstream Petroleum Resources Development Act, inviting public comment and signaling a renewed commitment to reform. The regulations will outline the procedures for implementing the Act – approved in November but not yet in effect – ushering in a more modern, investor-oriented framework for hydrocarbon exploration and production.
Establishing a Fit-for-Purpose Framework
For years, the lack of a clear and sector-specific legal framework has impeded South Africa's ability to attract sustained exploration activity and unlock its offshore potential. The Upstream Petroleum Resources Development Act aims to rectify this by establishing transparent licensing systems, defining state and Black Economic Empowerment participation and clarifying production-sharing mechanisms.
Crucially, the Act seeks to create an enabling environment that balances investor interests with national development goals. It provides detailed guidance on the application and granting of exploration and production rights, introduces more predictable fiscal terms and offers mechanisms to manage environmental and social responsibilities. By aligning South Africa's regulatory framework with international best practices, the government is positioning the country to compete more effectively for operator capital, particularly as global exploration budgets become more selective and carbon-conscious.
Igniting Interest in the Orange Basin
South Africa's offshore acreage, particularly in the Orange Basin, has been gaining momentum on the back of transformational discoveries in neighboring Namibia. Within South African waters, the Brulpadda and Luiperd finds in Block 11B/12B remain the most commercially significant to date, estimated to hold more than 600 million barrels of oil equivalent. While TotalEnergies has since exited the block, citing internal portfolio shifts, the company's re-engagement with the broader South African market suggests continued belief in the basin's long-term potential.
Last August, TotalEnergies officially became operator of offshore exploration Block 3B/4B, positioned southeast and on trend with neighboring oil discoveries, including the company's Venus discovery in Namibia. The Orange Basin represents one of the last untapped frontiers capable of delivering large-scale oil and gas volumes. With a more supportive regulatory backdrop taking shape, South Africa is well-positioned to attract the kind of deepwater investment needed to de-risk its acreage and build out its domestic gas infrastructure — a critical step toward energy security and industrial growth.
Positioning South Africa for Investment at AEW 2025
As the government works to implement the Upstream Petroleum Resources Development Act, African Energy Week (AEW) 2025: Invest in African Energies in Cape Town offers a high-profile platform to promote the country's renewed upstream vision. AEW is expected to convene regulators, IOCs and service companies to discuss the commercial implications of the legislative overhaul and chart a path forward for exploration and development in South Africa.
'For companies like TotalEnergies – whose multi-energy strategy includes natural gas, renewables and decarbonized operations – a stable and transparent regulatory framework is key. Sangster's statement reflects growing confidence in South Africa's policy direction, and signals to the broader investor community that the country is preparing to welcome a new wave of responsible, large-scale investment,' says NJ Ayuk, Executive Chairman, African Energy Chamber.
AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.
Distributed by APO Group on behalf of African Energy Chamber.