FSO Palanca; Source Stapem Offshore

Seal of approval for UK oil & gas firm to expand its stake in Angolan offshore blocks

UK-headquartered and AIM-listed company Afentra plc – through its wholly-owned subsidiary, Afentra (Angola) Ltd – has received the Angolan government’s blessing to boost its interest in two blocks off the coast of Angola.

FSO Palanca; Source Stapem Offshore

Following its entrance into Angola in May 2023, Aftentra disclosed a sale and purchase agreement (SPA) with Azule Energy Angola Production in July 2023 to buy an additional 12% interest in Block 3/05 and a 16% stake in Block 3/05A offshore Angola for a total consideration of up to $84.5 million with an effective date of October 31, 2022.

As the government’s approval has now been secured for the acquisition, the UK firm is working with Azule to finalize the formal completion of this transaction, which is anticipated to occur within the second quarter of 2024.

Furthermore, the government of Angola declared the Punja development area, located in Block 3/05A, as a marginal discovery after a request was received from the block’s partners. Thanks to this, Afentra explains that the applicable fiscal incentives will be applied to the discovery, “significantly enhancing” the commercial value of the potential development.

Paul McDade, Afentra’s CEO, commented: “The Angolan government’s approval of the Azule acquisition allows us to proceed with the completion of our third transaction in Angola providing Afentra a material equity position in these world-class assets. The improved fiscal terms for the Punja discovery is another clear indication of the support given by the government of Angola to parties willing to invest in their oil and gas sector.

“This further encourages us to continue to work with Sonangol and our joint venture partners to grow production and reserves as we develop the vast potential of both the producing fields in Block 3/05 and the significant discoveries within Block 3/05A.”

Block 3/05, located in the Lower Congo Basin, consists of eight mature producing fields discovered by Elf Petroleum – now part of TotalEnergies – in the early 1980s. The block has a diverse portfolio of over 100 wells, producing hydrocarbons from around 40 production wells with nine active water injectors.

The block’s facilities include 17 wellhead and support platforms and four processing platforms, with oil exported via the FSO Palanca. The green light for the Azule acquisition comes months after Afentra wrapped up the deal with Sonangol for a 14% non-operating interest in Block 3/05 and a 40% non-operating stake in Block 23.