UK-based Afentra, through its wholly-owned subsidiary Afentra (Angola), has secured approval from the Angolan Government for the acquisition of stakes in two offshore blocks from state-owned oil and gas company Sonangol.
The deal was announced in April 2022. It was later amended and restated in July 2023.
As per the agreement, which is now schedule for completion by the end of this year, Afentra will acquire a 14% interest in Block 3/05 and a 40% stake in Block 23.
Afentra said it is due to receive government approval for the purchase of additional stakes of 12% in Block 3/05 and 16% in Block 3/05A from Azule Energy Angola Production. This deal is due to be completed in Q4 2023.
Following completion of the two deals, along with existing stakes, Afentra will have a 30% interest in Block 3/05 and a 21.33% stake in Block 3/05A.
Furthermore, the Government of Angola has formally approved the redistribution of the stakes of China Sonangol International in Block 3/05A.
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Upon completion of the redistribution, Afentra’s current interest in Block 3/05A will be increased from 4% to 5.33%. This stake will be further increased to 21.33% upon the closure of the Azule acquisition.
Afentra CEO Paul McDade said: “The combination of these interests with our current interests in Block 3/05 and 3/05A will provide Afentra with a material equity position in this world-class production asset.
“We continue to work with the operator Sonangol and our joint venture partners to ensure that we maximise the production, reserves and value of this quality long-life asset for the benefit of all stakeholders whilst also reducing the emissions profile.”