Africa Energy Corp. is taking longer to complete the restructuring that is intended to give it a 75% stake in South Africa’s offshore Block 11B/12B, extending the transaction’s long-stop date by more than two years to 31 December 2028. The company has signed addenda to its existing agreements with Arostyle Investments and Main Street 1549, restructuring how the interests in Main Street will be transferred while keeping the intended final ownership unchanged.
Under the revised structure, the other investors involved in the transaction will transfer their combined 90% participating interest in the block to Main Street. Africa Energy will then acquire Arostyle’s 51% ownership interest in Main Street, giving it full ownership of Main Street’s common and Class B shares. Main Street will subsequently transfer a 25% participating interest in Block 11B/12B to Arostyle, leaving Africa Energy with the intended 75% stake and Arostyle with 25%.
The restructuring also settles all inter-party loan claims in full, simplifying the financial relationships between the parties as the transaction moves toward completion. However, the revised agreements remain subject to regulatory approvals and other closing conditions, including approval under Section 11 of South Africa’s Mineral and Petroleum Resources Development Act for the relevant transfer of interests.
Read Also: Why CWP Is Putting 30 GW of Renewables Behind One Mauritania Project
Block 11B/12B is located offshore South Africa’s southern coast and contains the Brulpadda and Luiperd gas-condensate discoveries. Africa Energy has been building its controlling position in the block through Main Street, making the ownership restructuring an important step in determining who ultimately controls the asset and how its interests are held.
The extension to 2028 does not change the intended 75/25 ownership split, but it does underline how long complex offshore transactions can take to move from agreement to completion. For Africa Energy, the immediate task is now to complete the revised ownership sequence, secure the required approvals and satisfy the remaining conditions before it can formally reach the 75% position it has been targeting.
