African International Energy plans to become a leader in the production of green energy in Africa, following its acquisition of production and exploration licences in the Orange Basin on South Africa’s west coast.
AIE, which is listed on the Frankfurt Stock Exchange, is acquiring 100% of the total issued share capital of both Forest Exploration SA and Anschutz SA. The company secured the final terms of agreement with Forest Oil and Anschutz by paying a R79 million deposit on April 11.
AIE CEO Aldworth Mbalati said that the company expected to begin contributing natural gas energy to the national grid from the second half of 2016 or early 2017, from which a 2% contribution to the national grid is expected.
The project, which is expected to create “thousands” of jobs, has received the required funding from shareholders and is waiting for final approval from various government departments.
Mbalati co-founded AIE in 2010 with the purpose of contributing clean energy to an overburdened national grid that relied too heavily on coal-fired power stations, he said.