SUBSCRIBE
PROFILE

Africa Energy increases its stake in South Africa’s Block 11B/12B

Africa Energy strengthens its position in the gas-rich Block 11B/12B by restructuring its capital and reinforcing strategic governance, while showing a clear improvement in financial performance in Q2 2025.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

START NOW — 4.90$/month

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

SUBSCRIBE — 99$/year

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Sign up for free to unlock this article

Africa Energy Corp., a Canadian oil and gas exploration company, released its financial and operational results for the second quarter of 2025, marked by a significant step forward both financially and strategically. The company announced a restructuring of its investment in the offshore South African Block 11B/12B, raising its interest to 75% through its subsidiary Main Street 1549 (Proprietary) Limited, pending regulatory approvals.

This development follows the exit of certain partners and the signing of definitive agreements with Arostyle Investments (RF) (Proprietary) Limited. The remaining 25% interest will be held by Arostyle. The transaction remains subject to conditions precedent, including regulatory approval of the transfer of interests from the withdrawing parties by the relevant South African authorities.

Leadership reorganization and strengthened governance

To support this strategic transition, Africa Energy has reinforced its leadership team. On April 28, 2025, the company appointed Dr. Phindile Masangane as Head of Strategy and Business Development. She also joined the company’s Board of Directors. Her background in South African regulatory agencies and experience in energy infrastructure projects are seen as key assets for managing the development of the block.

The Board of Directors also appointed a new Chair of the Audit Committee, Larry Taddei, following the resignation of Pascal Nicodeme on May 15, 2025. A specialist in corporate financial management, Mr. Taddei has been tasked with strengthening the group’s compliance and financial oversight practices during this strategic realignment.

Marked improvement in financial fundamentals

As of June 30, 2025, Africa Energy held USD 4.1 million in cash and positive working capital of USD 3.8 million, compared to a working capital deficit of USD 8.2 million at the end of 2024. This improvement is primarily attributed to a private placement and a debt-to-equity transaction completed in late March 2025. The company now reports no outstanding debt, compared to USD 10.4 million as of December 31, 2024.

Operating expenses dropped to USD 477,000 in Q2 2025, from USD 47.6 million a year earlier. This decline is largely due to the end of non-cash losses related to the revaluation of a financial asset recorded in Q2 2024. Over the half-year, total expenses fell by more than USD 70 million.

Next steps for block development

Africa Energy continues to pursue approval for the production right for Block 11B/12B. The company is also working to secure offtake agreements for the gas and condensate resources discovered. The Brulpadda and Luiperd fields located within the block are considered among the most promising natural gas assets in Southern Africa.

With a consolidated ownership structure, improved financial position, and experienced leadership team, Africa Energy is reinforcing its strategic stance amid ongoing regulatory and commercial challenges tied to future development. Market participants will closely monitor the regulatory process and conditions tied to the withdrawal of historical partners from the project.

  • Popular on energynews.pro
Technip Energies secures two major contracts for Ecoplanta methanol plant in Spain
Hydrogen Valleys: the Clean Hydrogen Partnership selects 36 European applications
Iberdrola adds 708 MW of solar capacity to joint venture with Norges Bank
Dutch parliament approves RED III, reassuring biofuels market participants
EDF power solutions and El Paso Electric launch 150 MW solar facility in New Mexico
Baker Hughes to supply key liquefaction equipment for Port Arthur LNG Phase 2
Baker Hughes has secured a contract from Bechtel to provide gas turbines and compressors for the second phase of Sempra Infrastructure’s LNG export project in Texas.
Targa invests $1.6bn in NGL pipeline between Permian and Mont Belvieu
Targa Resources will build a 500,000 barrels-per-day pipeline in the Permian Basin to connect its assets to Mont Belvieu, strengthening its logistics network with commissioning scheduled for the third quarter of 2027.
J&F Investimentos targets EDF’s thermal plant amid Brazil’s booming energy M&A
Brazilian holding J&F Investimentos is in talks to acquire EDF’s Norte Fluminense thermal plant, valued up to BRL2bn ($374 million), as energy-related M&A activity surges across the country.
Chevron puts Colorado pipeline assets up for sale for more than $2 billion
Chevron has appointed Bank of America to manage the sale of pipeline infrastructure in the Denver-Julesburg basin, targeting a valuation of over $2 billion, according to sources familiar with the matter.
Hungary secures 10-year LNG contract with Engie through 2038
Hungary has signed a ten-year agreement with Engie for the annual import of 400 mn m³ of liquefied natural gas starting in 2028, reinforcing its energy diversification strategy despite its ongoing reliance on Russian gas.
Ukrainian suspected in Nord Stream sabotage held in Poland
Wanted by Germany for his alleged role in the 2022 sabotage of the Nord Stream pipelines, a Ukrainian has been arrested in Poland and placed in provisional detention pending possible extradition.
Russia strikes 95 targets and severely damages Ukrainian gas sites
An unprecedented overnight offensive targeted gas infrastructure in Ukraine, damaging several key facilities in the Kharkiv and Poltava regions, according to Ukrainian authorities.
Fluxys declares force majeure at Dunkirk, disrupting LNG deliveries
The Dunkirk LNG terminal, the second largest in continental Europe, is seeing reduced capacity due to a nationwide strike disrupting all French LNG infrastructure.
Russia targets 56 mn tonnes of LNG annually by 2027 despite 2024 decline
Russia’s liquefied natural gas output will increase steadily through 2027 under the national energy development plan, despite a 6% drop recorded in the first eight months of 2024.
QatarEnergy seals major helium export deal with Germany’s Messer
QatarEnergy has signed a long-term contract with Messer to supply 100 million cubic feet of helium per year, strengthening Doha’s position as a key player in this strategic market.
KKR strengthens Middle East presence with stake in ADNOC gas pipelines
US-based fund KKR has acquired a minority interest in the gas pipeline assets of Abu Dhabi oil operator ADNOC, continuing its strategy to expand energy infrastructure investments in the Middle East.
Shell starts production at Victory gas field in the North Sea
Shell UK has started production at the Victory field north of Shetland, integrating its volumes into the national gas network through existing infrastructure to strengthen UK supply.
Exxon requests security guarantees for Mozambique gas project
Exxon is seeking direct support from the Mozambican government to secure its Rovuma LNG project, as Islamist violence continues to hinder investment in the country’s north.
Chevron invests $690 million to revive offshore gas in Equatorial Guinea
Chevron has signed a $690 million agreement with Equatorial Guinea to develop gas from the Aseng field, amid a long-term decline in national oil production and a search for new economic drivers.
TotalEnergies postpones Mozambique LNG gas project restart to 2029
TotalEnergies has set 2029 as the restart date for its Mozambique LNG project, frozen since 2021, delaying the exploitation of a strategic investment worth more than $20bn in liquefied natural gas.
A dedicated company revives the $25bn Nigeria-Morocco pipeline project
The establishment of a dedicated entity marks a new phase for the Nigeria-Morocco pipeline, with tenders and the final investment decision expected by the end of 2025.
Asia could absorb more Russian LNG after the European embargo in 2027
The European ban on Russian liquefied natural gas from 2027 is pushing Siberian producers to reorient their flows to Asia, despite logistical and regulatory constraints.
Caturus Energy deploys the most powerful onshore rig in the United States with Nabors
Caturus Energy has signed a multi-year contract with Nabors Industries to deploy a next-generation onshore rig, aimed at supporting the expansion of its gas output in the Eagle Ford and Austin Chalk formations in Texas.
ICE launches two new natural gas trading points with Trinity in Texas
Trinity Gas Storage partners with Intercontinental Exchange to open two new trading points at its Bethel site, strengthening East Texas’s strategic appeal in the U.S. gas market.
Egypt invests in domestic gas despite rising LNG imports
The Egyptian government is accelerating the deployment of its gas network and the conversion of vehicles to CNG, strengthening infrastructure despite a decline in domestic production.