Afentra Tightens Its Grip on Angola’s Offshore Blocks 3/05 and 3/05A as the Final Government Decree Lands
Afentra, an upstream company focused on mature production and development assets in Africa, is close to growing its stake in two offshore Angolan blocks after the last government approval came through.
Angola’s Ministry of Mineral Resources, Petroleum and Gas (MIREMPET) has published the executive decree for Block 3/05A, following the one for Block 3/05. With both decrees out, the parties will move to the novation process and the remaining customary completion steps, with completion expected in the coming weeks.
Sonangol E&P, the operator of both blocks, chose to take part in the deal alongside Afentra and Etablissements Maurel & Prom (M&P). The three will jointly acquire Etu Energias’ 10% interest in Block 3/05 and 13.33% interest in Block 3/05A. Afentra will take an additional 3.33% in Block 3/05 and 3.66% in Block 3/05A, lifting its interests to 33.33% and 24.99% respectively.
Afentra will pay net upfront consideration of $15.20 million, plus contingent payments of up to $6.74 million linked to oil price thresholds, production performance and the successful development of key discoveries. The transaction’s effective date is Dec. 31, 2023, so the payment due at completion is expected to be significantly lower than the upfront figure, reflecting adjustments for the period since then.
“The publication of the executive decree for Block 3/05A, following that of 3/05, represents a further important milestone in the expansion of our offshore acreage in Angola,” said Afentra Chief Executive Paul McDade. “We look forward to working towards closing the acquisition with Etu and our partners, Sonangol and M&P.”
Source: energy-pedia.com
