South Africa’s Offshore Block Granted More Time for Environmental Application
September 9, 2024
Canadian oil and gas exploration company Africa Energy has confirmed the extension of deadline for the submission of the Environmental Impact Assessment Report (EIAR) for the Block 11B/12B offshore South Africa, following the exit of three partners from the development announced earlier this year.
In light of the withdrawal of the joint venture partners TotalEnergies, QatarEnergy, and CNRI, announced July 29, 2024, Africa Energy is currently assessing the best way forward in respect to the environmental application process.
The approval of the production right application will not occur until after the Block 11B/12B joint venture receives environmental authorization in respect to the EIAR, which must be submitted until the extended deadline set for May 19, 2025.
Africa Energy, through its investment in Main Street 1549, which currently holds a 10% interest in Block 11B/12B, has restated its intention to not withdraw from the development.
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 expects to hold 100% interest in Block 11B/12B.
The Block 11B/12B is located in the Outeniqua Basin, around 175 kilometers off the southern coast of South Africa, and covers an area of 19,000 square kilometers with water depths ranging from 200 to 1,800 meters.
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.
