Africa Energy to become sole owner offshore South Africa

Africa Energy Corporation, through its investment in Main Street 1549 Pty Ltd, is anticipating complete ownership of Block 11B/12B offshore the Republic of South Africa, as TotalEnergies EP South Africa BV and QatarEnergy International E&P LLC wants out of the venture 

Both the companies have provided notice to the joint venture partners that they will withdraw from their 45% (Total) and 25% (QatarEnergy) interest. 

CNR International (South Africa) Limited also provided notification of withdrawal of their 20% interest in Block 11B/12B. Under the joint operating agreement, the withdrawing parties assign their interest free of charge to each of the non-withdrawing partners in proportion to the interest of non-withdrawing partners. 

In the recent years, analytics company GlobalData has noted a shift of international oil companies (IOC) from high-risk investments towards lower-carbon interests. 

Largest natural gas discoveries

Africa Energy, which currently holds a 10% interest in Block 11B/12B, does not intend to withdraw. Despite the challenges and delays encountered so far, it remains confident that the Block 11B/12B resources can be commercially developed. The Brulpadda and Luiperd discoveries are the largest discoveries of natural gas resources in South Africa and if developed, could supply a significant portion of the country’s energy needs as it seeks to transition away from coal fired power plants.

The withdrawal of the joint venture partners from Block 11B/12B is subject to all relevant regulatory approvals by South African authorities. Subject to all relevant regulatory approvals, Main Street 1549 Pty Ltd. expects to hold 100% interest in Block 11B/12B. The Company will be focused on the Block 11B/12B Production Right approval and securing offtake customers. 

In March, TotalEnergies, along with QatarEnergy, has signed an agreement with Azinam and Ricocure to acquire participating interests in Block 3B/4B in Orange Basin, South Africa.