British oil and gas company Afentra has concluded the acquisition of a 4% stake in two blocks offshore Angola from Croatia’s INA-Industrija Nafte.
The acquisition in Block 3/05 and Block 3/05A marks Afentra’s foray into the Angola oil and gas space.
In April, Block 3/05’s gross output averaged 19,000 barrels of oil per day.
Afentra noted that its working interest in Block 3/05A would increase from 4% to 5.33%, subject to final approval of the allocation of the China Sonangol International interest to the remaining joint venture partners.
The deal, which was first announced in July 2022, received the nod from Angola’s Ministry of Mineral Resources, Oil and Gas in January 2023.
Afentra CEO Paul McDade said: “The indicative transaction metrics upon sale of crude inventories speak to the competitiveness with which we have been able to structure this deal and we are pleased to mark the inception of our partnership with Sonangol in Blocks 3/05 and 3/05A.
“It is also highly encouraging that the terms for the Block 3/05 licence extension award have been agreed; this represents a major step towards completion of the Sonangol transaction within our previously guided timeline.”
The deal, according to the British company, results in a net upfront consideration of $17m, which is mitigated by the company inheriting crude oil stock with a value of around $16.6m at $80 per barrel.
Additionally, the company has set aside $10m as a “escrow deposit at completion” that will be paid to INA following the formal completion of the Block 3/05 licence extension.
Afentra also noted that it expects to sell its first cargo of crude oil in the third quarter of this year.