Africa Energy has announced an operations update regarding Block 11B/12B in South Africa, revealing that the Environmental and Social Impact Assessment (ESIA) has been granted an extension amid ongoing legal challenges affecting the country’s offshore oil and gas sector.
The extension follows a recent decision by the Western Cape High Court to set aside an environmental authorization for offshore exploration operations in Block 5/6/7, held by an unrelated party. The court ruled that additional, new, and amended environmental assessments must be conducted and placed before the Minister of Mineral and Petroleum Resources for reconsideration. An application for leave to appeal this decision to the Supreme Court of Appeal has been launched by the affected party.
The Company is engaging with its advisors, including legal counsel, to determine the amendments and additions that may be required to its ESIA as a result of the High Court decision. Due to the 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.
Main Street currently holds a 10% participating interest in Block 11B/12B, offshore South Africa. 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, the Company expects to hold a 75% direct interest in Block 11B/12B. Both the assignment of the withdrawing parties’ interest to Main Street and the completion of the Main Street restructuring require the grant of the production right.
Africa Energy has stated it is continuing to gather information and work with applicable regulators to better understand the current situation and will provide an update on timing and status once it has further information.
Source: newswire.ca