Domino effect of recent permit reversal: Uncertainty envelops another African block’s development

October 10, 2025, by Melisa Cavcic

After the Western Cape High Court’s decision to ax environmental authorization for oil and gas offshore drilling activities planned in Block 5/6/7, Canada-headquartered oil and gas exploration company Africa Energy has embarked on talks to find out what is required for an environmental and social impact assessment (ESIA) related to another block off the coast of South Africa to ensure its development can move forward.

Deepsea Stavanger semi-submersible rig; Source: Africa Energy

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, has obtained an extension for the submission of a new environmental and social impact assessment, with the deadline now moved to May 4, 2026.

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The Canadian player emphasizes that the extension to the ESIA has been granted in light of the recent 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, which opted to challenge the court’s ruling.

As the extension allows additional, new, and amended environmental assessments to be conducted and placed before the Minister of Mineral and Petroleum Resources for reconsideration, the firm underlines that it is engaging with its advisors, including legal counsel, to determine the amendments and additions that may be required to its ESIA because of the court’s decision.

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Africa Energy underscored: “Due to the High Court decision, which is pending appeal to the Supreme Court of Appeal, there is no certainty on the timing of the grant of the environmental authorization after the submission of the amended ESIA.

“The grant of the environmental authorization is a prerequisite to the grant of the production right in relation to Block 11B/12B. The company is continuing to gather information and work with applicable regulators in order to better understand the current situation.”

While Main Street currently holds a 10% participating interest in Block 11B/12B, the company expects to hold a 75% direct interest in Block 11B/12B, subject to all relevant regulatory approvals by South African authorities regarding the withdrawal of the joint venture partners in Block 11B/12B and completion of the restructuring of Main Street.

Africa Energy is adamant that both the assignment of the withdrawing parties’ interest in Block 11B/12B to Main Street and the completion of the restructuring require the grant of the production right in relation to Block 11B/12B.

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