The company is awaiting regulatory approval for a reworked environmental authorisation to survey Block 11B/12B off SA's southern coast.

Using domestic gas is a key part of SA's strategy to diversify away from coal-fired power generation, with a flurry of new projects being pursued including the country's first liquefied natural gas import terminal along the east coast.

"Our 11B/12B indigenous gas should be very competitive versus imported LNG," Robert Nicolella said from the Africa Energy offices in Cape Town.

Nicolella said the company was studying various ways to market the gas, although its preference is to supply a gas-to-power plant. South Africa is targeting 6 000 megawatts of new gas power projects.

The CEO said Africa Energy is currently in talks with former national oil company PetroSA to use some of its infrastructure to land gas from the Brulpadda and Luiperd fields at Mossel Bay.

TotalEnergies first mooted using PetroSA's infrastructure, which includes the FA offshore platform in Block 9, to help accelerate production.

The idea was to connect Block 11B/12B to existing subsea pipelines that run to the FA platform and from there onwards to Mossel Bay.

"It could be a commercial alternative. It's an option, without a doubt," Nicolella said of using PetroSA infrastructure.

Africa Energy's majority-owned local subsidiary Main Street 1549 was left as operator of Block 11B/12B after TotalEnergies and joint venture partners QatarEnergy and Canadian Natural Resources decided to leave the project last year.

Announcing its withdrawal last July, TotalEnergies said it appeared to be "too challenging to economically develop" and monetize the gas discoveries for the domestic market, without elaborating.

Main Street will hold a 75% participating interest in the block and Arostyle Investments the remainder, according to Africa Energy Corp's website.