HCI restructured Africa Energy Corp. to gain control of South Africas largest offshore gas block, Brulpadda and Luiperd.
Full production rights expected by Q1 2026, with options including gas-to-power and LNG exports to monetize resources.
Copelyns strategy strengthens HCIs pivot to energy security, reinforcing its position in South Africas low-carbon transition.
Hosken Consolidated Investments HCI, the Johannesburg-listed investment group led by South African businessman John Copelyn, is advancing plans to commercialize South Africas largest offshore gas discoveryBrulpadda and Luiperdas part of efforts to help resolve the countrys enduring energy crisis.
Located in Block 11B/12B, the multi-trillion-cubic-feet discovery is South Africas most significant to date. Following the 2024 exit of international partners including TotalEnergies, CNR International, and QatarEnergy, HCI stepped in through its energy arm , Impact Oil Gas IOG, to keep the project alive.
HCI now owns a 49 percent stake in Toronto-listed Africa Energy Corporation AEC, which holds a 10 percent interest in the block and is set to become operator. On May 29, 2025 , AEC signed a letter of intent to acquire the remaining 51 percent of Main Street from Arostyle Investments, pending regulatory conditions by September 30, 2026. Once finalized, AEC will fully own Main Streets ordinary and Class B sharesstreamlining its stake in Block 11B/12B.
Building gas infrastructure for energy securityTo unlock value, AEC has cleared debt, restructured its board, and secured approval of its scoping report from South Africas Department of Minerals and Energy. A full production right is expected by Q1 2026.
HCI is now weighing two commercialization options: supplying gas to a power plant near Mossel Bayoffering lower emissions than coalor exporting via a floating LNG facility. While the condensate is already internationally marketable, monetizing the gas poses a challenge due to currency risk between dollar-priced gas and rand-denominated power tariffs.