Table of Contents
Key Points
- HCI restructured Africa Energy Corp. to gain control of South Africa’s 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.
- Copelyn’s strategy strengthens HCI’s pivot to energy security, reinforcing its position in South Africa’s 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 Africa’s largest offshore gas discovery—Brulpadda and Luiperd—as part of efforts to help resolve the country’s enduring energy crisis.
Located in Block 11B/12B, the multi-trillion-cubic-feet discovery is South Africa’s 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 Street’s ordinary and Class B shares—streamlining its stake in Block 11B/12B.
Building gas infrastructure for energy security
To unlock value, AEC has cleared debt, restructured its board, and secured approval of its scoping report from South Africa’s 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 Bay—offering lower emissions than coal—or 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.
Copelyn’s long-term energy play
Since becoming CEO in 1997, Copelyn has reshaped HCI into one of South Africa’s most diversified Black empowerment investment firms, with assets spanning gaming, media, hospitality, real estate, and energy.
Holding a 7.7 percent stake in HCI through his investment vehicle, Chearsley Investments Proprietary Limited—equivalent to 6.63 million shares—Copelyn has remained an influential force behind subsidiaries such as Deneb Investments, Tsogo Sun, and eMedia Holdings.
HCI’s strategic pivot to gas reflects the next phase of Copelyn’s long-term vision—anchored in energy security, indigenous resource development, and lower-carbon growth. By championing South Africa’s only major offshore gas project, he is positioning the firm to shape not just shareholder returns but the country’s energy future.
