Angola: Afentra obtains authorization to acquire interests in offshore blocks

British company Afentra, through its wholly-owned subsidiary Afentra (Angola), was approved by the Angolan government to acquire stakes in two offshore blocks owned by state-owned oil and gas company Sonangol.

The agreement was announced in April 2022. It was subsequently amended and reformulated in July 2023. Under the agreement, which is now expected to be finalized by the end of this year, Afentra will acquire a 14% interest in block 3/05 and a 40% interest in block 23.

Afentra announced that it is expected to receive government approval for the purchase of an additional 12% interest in Block 3/05 and 16% interest in Block 3/05A from Azule Energy Angola Production. This transaction is expected to be finalized in the fourth quarter of 2023.

Following completion of the two transactions, together with the existing interests, Afentra will hold a 30% interest in Block 3/05 and a 21.33% interest in Block 3/05A.

In addition, the Angolan government has formally approved the redistribution of China Sonangol International's interests in Block 3/05A.

Following the redistribution, Afentra's current interest in Block 3/05A will be increased from 4% to 5.33%. This interest will be further increased to 21.33% upon completion of the Azule acquisition.

Paul McDade, CEO of Afentra, said: "The combination of these interests with our existing interests in Blocks 3/05 and 3/05A will provide Afentra with a significant financial position in this world-class production asset.

"We continue to work with operator Sonangol and our joint venture partners to ensure that we maximize the production, reserves and value of this long-life, quality asset for the benefit of all stakeholders while also reducing the emissions profile."