Companies review offshore operations

Withdrawals likely

SOUTH AFRICA: According to a statement issued by African Energy Corp, CNR International has announced its intention to withdraw its 20% interest in the offshore Block 11B/12B.

The statement also contends that TotalEnergies EP South Africa to be reviewing its 45% interest in the joint operating agreement (JOA).

Under the JOA, the other parties to the joint venture may advise whether or not they will also withdraw within 30 days. Withdrawing parties assign their interest free of charge to each of the non-withdrawing partners in proportion to the interest of non-withdrawing partners. 

African Energy, which currently holds a 10% interest in the Block through its investment in Main Street 1549 Pty Ltd is not intending to withdraw saying that it believes natural gas will play a critical role in the country’s energy transition.

CNR's withdrawal from its 20% interest is subject to all relevant regulatory approvals by South African authorities.

Block 11B/12B is located in the Outeniqua Basin approximately 175km off the southern coast of South Africa. The block covers an area of 18,734 km² with water depths ranging from 200 metres in the north to 1,800 metres in the south. The Lower Cretaceous Post-rift Paddavissie Fairway, which contains the recent Luiperd and Brulpadda discoveries, is located in the southwest corner of the block.

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