Total’s gas exit - PetroSA blunder loses SA R80bn investment, R100bn in lost taxes

SA’s Government of National Unity faces a major stress test after oil major Total yesterday announced its exit from a highly prospective gas field off the Southern Cape coast. The French multinational and its partners had already invested R8bn in exploring the field, around 10% of the total investment to get a project of this size operational. JSE-listed company HCI is a 10% shareholder in the abandoned field. DA shadow minister James Lorimer has been regularly updating the BizNews community on SA’s oil and gas story. He explains to BizNews editor Alec Hogg how Total’s exit from the Brulpadda and Luiperd fields will cost the country at least R100bn in foregone tax revenues and calls for the cause - a dysfunctional PetroSA - to be urgently addressed.