FSO Palanca; Source Stapem Offshore

UK oil & gas player boosts its stakes in two blocks offshore Angola

UK-headquartered and AIM-listed company Afentra plc – through its wholly-owned subsidiary, Afentra (Angola) Ltd – has wrapped up the acquisition of additional interests in two blocks off the coast of Angola.

FSO Palanca; Source Stapem Offshore

After entering Angola in May 2023, the company 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.

Following the conclusion of the deal with Sonangol for a 14% non-operating interest in Block 3/05 and a 40% non-operating stake in Block 23, Afentra secured the government’s approval for the Azule acquisition, which has now been completed, increasing the company’s interest in Block 3/05 to 30% and in Block 3/05A to 21.33%.

Paul McDade, CEO of Afentra, commented: “The completion of the Azule acquisition is the final step in the complex process of acquiring a material equity position in both Block 3/05 (30%) and Block 3/05A (21.33%) through three separate transactions. We have now achieved our first goal of having significant exposure to these world-class production and near-term development assets.

“The next step, working closely with our joint venture partners, is to deliver the full potential of these assets for the benefit of all of our stakeholders while also reducing the carbon footprint of the assets. As with the previous two transactions the acquisition structure ensures that Afentra benefits from the net cash flow from the assets while working through the completion process, significantly reducing the cash payment at completion.”

According to the UK player, the combined gross production for the first four months of 2024 ending April 30, 2024, for Blocks 3/05 and 3/05A has averaged about 23,000 bopd (net: around 6,800, bopd). The company confirmed that the light well intervention program, kicked off by the joint venture in 2023, continues into 2024 with 45 interventions planned over two campaigns. Afentra expects to sell its next cargo of crude oil, approximately 450,000 bbls, in June 2024.   

“The Block 3/05 asset continues to perform strongly following the successful implementation of an ongoing work programme designed to optimise production from the existing wells. The completion of this transaction presents a strong growth platform for Afentra to capitalise on further compelling opportunities in Angola as well as in target markets in West Africa as we seek to build Afentra into a leading African focused independent,” added McDade.

Located in the Lower Congo Basin, Block 3/05 consists of eight mature producing fields discovered by Elf Petroleum – now part of TotalEnergies – in the early 1980s. With a diverse portfolio of over 100 wells, the block produces 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.