With extension in hand, Canadian firm prepares to take the reins at South African offshore block as partners call it a day

Canadian oil and gas exploration company Africa Energy has confirmed the deadline extension for the environmental impact assessment report (EIAR) at a block off the coast of South Africa, which will be fully owned by the firm’s affiliate, Main Street 1549, as its partners are determined to pull out.

The withdrawal of CNR International, TotalEnergies, and QatarEnergy from Block 11B/12B, disclosed in July 2024, is subject to all relevant regulatory approvals by South African authorities. Once all regulatory approvals are received, Africa Energy’s Main Street 1549 will focus on the block’s production right approval and securing offtake customers.

According to the Canadian firm, its joint venture partners in Block 11B/12B have obtained an extension to the submission deadline for the EIAR, which has now been prolonged to May 19, 2025. In light of the withdrawal of the joint venture partners, the firm is currently assessing the best way forward concerning the environmental application process.

Africa Energy has explained that the approval of the production right application will not occur until after the Block 11B/12B joint venture receives environmental authorization for the EIAR. The firm, through its investment in Main Street 1549, which currently holds a 10% interest in Block 11B/12B, does not intend to withdraw.

While the withdrawal of the joint venture partners from Block 11B/12B is subject to all relevant regulatory approvals by South African authorities, Main Street 1549 expects to hold 100% interest in the block once the withdrawal is sorted out.

TotalEnergies used Odfjell Drilling’s Deepsea Stavanger semi-submersible rig to make two gas discoveries, Brulpadda and Luiperd, in 2013 at the block, which could not be turned into commercial developments since economically developing and monetizing these gas discoveries for the South African market seemed too challenging.

The exit from an offshore block in South Africa was also recently pursued by Canada-headquartered Eco (Atlantic) Oil & Gas, which announced its plans to give up its interest but also took steps to take over a majority stake and operator role at another offshore block in the Orange Basin offshore Namibia.