• Africa Energy, now operator of South Africa's 11B/12B offshore block, is in talks with PetroSA to utilize its infrastructure.

• The aim is to develop the Brulpadda and Luiperd gas fields and reduce dependence on imported LNG.

• CNR International exited the site citing economic concerns, despite the block’s estimated 3.4 trillion cubic feet of gas and 192 million barrels of condensate.

Canadian-listed company Africa Energy has confirmed it is in discussions with South Africa’s state-owned PetroSA regarding the use of existing infrastructure to develop the 11B/12B offshore gas block. The talks include potential use of PetroSA’s offshore platform and pipelines to transport gas to the Mossel Bay refinery.

Africa Energy became the operator of the 11B/12B block following the withdrawal of former partners TotalEnergies, QatarEnergy, and CNR International in July 2024. The company has maintained its commitment to the site, located off South Africa’s southern coast, and is advancing plans to exploit the Brulpadda and Luiperd gas discoveries made in 2019 and 2020.

Chief Executive Officer Robert Nicolella stated that gas from the block could offer a cost advantage over imported liquefied natural gas (LNG), aligning with South Africa’s goal of diversifying away from coal, which still generates over 80% of the country’s electricity.

"Our 11B/12B indigenous gas should be very competitive versus imported LNG," Nicolella said during a media appearance. He added that the company is awaiting environmental approval to continue technical studies on the block.

Africa Energy aims to start gas production by 2033 and sees the project as contributing to South Africa’s Integrated Resource Plan (IRP), which targets an additional 6,000 megawatts of capacity on the national grid. The company holds a 75% stake in the 11B/12B block through its subsidiary Main Street 1549, with the remaining 25% owned by Arostyle Investments.

Despite this target, Africa Energy has not disclosed a concrete development timeline or detailed technical measures required to achieve first production. Upon exiting the site, CNR International cited concerns over the economic viability of the project, even though the block is estimated to hold 3.4 trillion cubic feet of natural gas and 192 million barrels of condensate.