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Obtaining production right for offshore block key to oil & gas firm’s South African expansion

With a recent court ruling spurring new environmental assessments for energy projects, Canada-headquartered oil and gas exploration company Africa Energy has confirmed an extension for the submission of a new environmental and social impact assessment (ESIA) for a block off the coast of the Republic of South Africa.

Deepsea Stavanger semi-submersible rig; Source: Africa Energy

Previously, an extension was obtained for the submission of a new environmental and social impact assessment, with the deadline moved to May 4, 2026, for Block 11B/12B offshore South Africa, which will be fully owned by Africa Energy’s affiliate, Main Street 1549, as its partners – CNR International, TotalEnergies, and QatarEnergy – are determined to pull out. 

However, Africa Energy has now revealed that its affiliate obtained a further extension for the submission of the ESIA to November 4, 2026, in light of the decision by the Western Cape High Court in South Africa to set aside an environmental authorization for offshore exploration operations in Block 5/6/7, held by TotalEnergies and Shell.

This court ruling enables additional, new, and amended environmental assessments to be conducted and placed before the Minister of Mineral and Petroleum Resources for reconsideration. An application for leave to appeal this decision to the Supreme Court of Appeal has been launched by the duo.

Africa Energy has engaged with its advisors, including legal counsel, to determine the appropriate way forward with respect to its ESIA as a result of the High Court decision, since the grant of the environmental authorization is a prerequisite to the grant of the production right for Block 11B/12B.

Currently, Main Street holds a 10% participating interest in Block 11B/12B, offshore South Africa. Subject to all relevant regulatory approvals by South African authorities in respect to the withdrawal of the joint venture partners and completion of its restructuring, the company expects to hold a 75% direct interest in the block.

TotalEnergies used Odfjell Drilling’s Deepsea Stavanger semi-submersible rig to make two gas discoveries, Brulpadda and Luiperd, at the block in 2023, but these were not turned into commercial developments since economically developing and monetizing them for the South African market was too challenging.

“Both the assignment of the withdrawing parties’ interest in Block 11B/12B to Main Street and the completion of the Main Street restructuring require grant of the production right in relation to Block 11B/12B,” emphasized Africa Energy.

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