UK-headquartered Afentra plc has received approval from the Angolan Ministry of Mineral Resources, Oil and Gas for the acquisition of INA-Industrija Nafte’s interest in two blocks offshore Angola.
Afentra is acquiring from INA-Industrija a 4 per cent interest in Block 3/05 and a 4 per cent interest in Block 3/05A, pursuant to a sale and purchase agreement (SPA) between the Croatian company and Afentra’s wholly-owned subsidiary Afentra (Angola) signed in July 2022.
The two parties are now working to finalize the formal completion of this acquisition.
Subject to final government approval of the distribution of the China Sonangol International (CSI) interest to the remaining joint venture partners, Afentra’s working interest in Block 3/05A will increase to 5.33 per cent.
According to Afentra CEO Paul McDade, the completion of the acquisition is expected in the coming weeks: “It will mark our entry into Angola and the first of two highly complementary acquisitions that will provide Afentra with a strong growth platform, underpinned by robust cash flow and significant potential to deliver upside value.”
The UK company is also acquiring a 20 per cent non-operated interest in Block 3/05 and a 40 per cent non-operated interest in Block 23 from Angola’s state-owned Sonangol.
Afentra confirmed that it had agreed with Sonangol to extend the long-stop date of the SPA from 31 December 2022 to 31 March 2023.
“[The acquisition] will also mark the inception of our partnership with Sonangol in Blocks 3/05 and 3/05A where we intend to work closely with Sonangol to optimise production and to extend the life of this quality, long-life asset.”
Block 3/05, located in the Lower Congo Basin, consists of eight mature producing fields discovered by Elf Petroleum – now part of TotalEnergies – in the early 1980s.
Sonangol assumed operatorship in 2005, however, no infill drilling campaigns have taken place in the last 15 years. The block has a diverse portfolio of over 100 wells and currently produces from around 40 production wells with nine active water injectors. The facilities include 17 wellhead and support platforms and four processing platforms, with oil exported via the FSO Palanca.
Block 23 is a 5,000 km2 exploration and appraisal block with a working petroleum system. Afentra believes the majority of the block, which is located in the Kwanza basin in water depths from 600 to 1,600 metres, remains underexplored.
Upon completion of acquisitions with Sonangol and INA, Afentra will have initial 2P Reserves of around 24 million barrels – 20 and 4 mmbo, respectively – and daily production of around 4,680 bbl/d (3,900 and 780 bopd, respectively).