Africa Energy and its joint venture partners are contemplating an early production system ("EPS") for a phased development of the Paddavissie Fairway on Block 11B/12B. The joint venture is currently performing development studies and preparing a field development plan and an environmental application with the intention of agreeing gas terms and submitting an application for a Production Right before the Exploration Right expires in September 2022. The EPS would provide first gas and condensate production from the Luiperd discovery and would accelerate the Block 11B/12B development timeline by utilizing existing nearby infrastructure on the adjacent block in order to supply gas to existing customers in Mossel Bay. The EPS is expected to significantly decrease the required capital expenditures to reach first production on Block 11B/12B. 

The Company expects that a full development of the Paddavissie Fairway would follow the EPS as the gas market expands in South Africa and are encouraged by the ongoing analysis of the seismic data that has identified additional prospectivity in the Paddavissie Fairway and to the east, confirming the large exploration upside remaining across the block. The development of Block 11B/12B will have positive implications for the South African economy and will be critical in facilitating the country's energy transition beyond coal with a domestic natural gas supply.

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

On Block 2B, the Company and its joint venture partners tendered for a semi-submersible rig and completed a seabed survey in preparation for drilling the Gazania-1 well. The operator, Azinam Limited ("Azinam"), finalized the well plan and is currently conducting negotiations with various rig contractors to optimize the well budget and drill the Gazania-1 well before the Exploration Right expires in November 2022.

KeyFacts Energy: Africa Energy South Africa country profile