Hello.
I'm a South African citizen who would like to work abroad, namely Europe.
A German friend of mine has offered to marry me so that I can obtain citizenship and a German passport.

Has anyone had any experience with this, or knows the ins and outs of doing this?
Do we have to live together? If so , for how long? When will I be able to apply for a German Passport/Citizenship after I get married? Will I have to give up my South African passport? Penalties if I get found out? Etc

Thanks

This is very serious, if found out beyond jail time, you would be deported and not ever allowed to return. One does not marry unless you do it because you want to be married to that person, live together and be a man and wife.