Canada’s Africa Energy Corp. takes over key South Africa gas block

South Africa

JOHANNESBURG, November 26, 2024 – Africa Energy Corporation has taken over operatorship of a key natural gas block offshore South Africa, Upstream Online reported on Tuesday.

TotalEnergies and partners QatarEnergy and Canadian Natural Resources announced their exit from Block 11B/12B in July.

The Canadian-owned and Africa-focused Africa Energy Corporation said it has now assumed operatorship through its 49% stake in local player Main Street.

Main Street will hold 100% of the block once the divestments by TotalEnergies and its partners are complete.

Block 11B/12B is estimated to hold 127.5 bcm (4.5 tcf) of gas resources in the Luiperd and Brulpadda discoveries.

In July, TotalEnergies confirmed its exit from two South African offshore blocks: 11B/12B and 5/6/7.

TotalEnergies EP South Africa had been active in Block 11B/12B since 2013, holding a 45% interest. The block’s two gas discoveries could not be converted into commercial developments, the company said.

The subsidiary also held 40% in Block 5/6/7. The company did not cite a reason for the exit from that play.

At the time the exit was reported, a source told Bloomberg that the move is intended to free up resources to concentrate on other exploration in the area, including Namibia.

In March, the company and partner QatarEnergy together acquired a majority stake in an exploration licence in South Africa’s portion of the prolific Orange Basin, where the French player has seen success with its Venus discovery on the Namibian side.

The company discovered two gasfields in Block 11B/12B in 2019, and their development was anticipated to supply an idled gas-to-liquids refinery at Mossel Bay on the country’s south coast. However, discussions on the price of the gas had stalled for years.

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