Shareholders Approve Africa Energy's SA Deal

Canada-based Africa Energy has received approval from its shareholders for the deal to raise the company’s stake in the Total-operated 11B/12B block off South Africa from 4.9% to 10%, it said on October 15. The deal was announced in August this year.

Africa Energy has a 49% interest in a consortium called Main Street, which in turn has a 10% position at the block. But it has agreed to consolidate the shares of its consortium partners Impact and Arostyle Investments. As a result of the transaction, Impact and Arostyle will become major shareholders in Africa Energy.

The company said it expects to complete the transactions in the coming weeks, subject to satisfaction of various conditions, including the final approval of the Toronto Stock Exchange.

Total holds a 45% stake in 11B/12B, while Qatar Petroleum has 25% and Canadian Natural Resources International has 20%. South African authorities hope that gas recovered from the block can be used to bolster domestic supply, including to the under-utilised Mossel Bay gas-to-liquids plant.