Angola: AFC invests $60 million to boost oil and gas production

Africa Finance Corporation (AFC), the leading provider of infrastructure solutions in Africa, has made a US$60 million investment in Etu Energias, formerly known as Somoil. This initiative is part of a strategy to encourage local participation in the continent's oil and energy industry.

This investment is an integral part of a global credit facility of $190 million, designed to facilitate the acquisition by Etu Energias of shares in oil and gas reserves. These were previously co-owned by TotalEnergies of France and Inpex Corporation of Japan. With this acquisition, Etu Energias will now own a 20% stake in deepwater Block 14 and a 10% stake in Block 14K, located around 100 kilometers from Cabinba in northern Angola. These blocks are currently operated by Chevron, an American company.

Thanks to this operation, Etu Energias' net production will almost double, from 9,000 to 19,000 barrels per day. This increase consolidates its position as a leader in Angola's upstream oil and gas sector, and plays a key role in the rapidly evolving energy sector.

Samaila Zubairu, President and CEO of AFC, underlined the organization's ongoing commitment to stimulating the growth of local players in the energy sector across Africa. AFC aims to support the sustainable development of Africa's resources while retaining value on the continent. AFC looks forward to collaborating with Etu Energias in achieving Angola's energy transition goals.

Edson Rodrigues Dos Santos, CEO of Etu Energias, expressed his satisfaction at this collaboration with AFC, which he sees as the start of a fruitful and expanding relationship. This acquisition represents an important milestone for Etu Energias, particularly in strengthening its presence in offshore operations, a field traditionally dominated by international oil companies.

AFC has also stepped up its investment in Angola's energy sector, with previous contributions including around US$165 million invested in Sonangol, Angola's state-owned oil company, between 2021 and 2022, and a recent $100 million investment in the construction of the Cabinda oil refinery in northern Angola, in partnership with Gemcorp Holdings Limited (GHL) and the African Export-Import Bank (Afreximbank).

Etu Energias' senior debt facility was structured as a club loan, with AFC and the African Export-Import Bank (Afreximbank) acting as lead arrangers. Banco Africano de Investimento (Banco BAI) also participated in financing the loan.