Afentra Acquires Stake in Angolan Blocks in Joint Venture Deal
Afentra, a UK-headquartered and AIM-listed upstream oil and gas company, has recently entered into an agreement to acquire a 50% stake in two offshore blocks in Angola. The joint venture (JV) deal involves Afentra purchasing half of the stake held by its partner, Etablissements Maurel & Prom (M&P), in blocks 3/05 and 3/05A.
The acquisition, which was negotiated alongside M&P, includes a sale and purchase agreement with Etu Energias for their 50% share. This transaction, subject to government approval and other customary conditions, will see Afentra gaining interests in both blocks, with an initial consideration of $23 million and a contingent consideration of up to $11 million.
Block Details
Block 3/05, located in the Lower Congo Basin, consists of mature producing fields discovered by Elf Petroleum in the 1980s. The block has multiple production wells, water injectors, and platforms for processing and export. The acquisition aligns with Afentra’s strategy to build a portfolio of cash-generative assets with high-margin production and development potential.
CEO Statement
Paul McDade, CEO of Afentra, expressed his satisfaction with the deal, emphasizing the company’s focus on value creation and partnership alignment. The transaction includes contingent payments based on oil prices and production levels, further incentivizing performance and development in the blocks.
Future Outlook
The completion of the acquisition is expected in the second half of 2025, pending regulatory approvals and final documentation. Afentra’s disciplined approach to capital deployment and strategic partnerships with Sonangol and M&P position the company for long-term value creation in Angola’s offshore assets.
Overall, the joint venture deal signifies Afentra’s commitment to expanding its presence in the Angolan oil and gas sector, leveraging existing cash resources for strategic investments in high-potential assets. The company’s proactive approach to acquisitions and partnerships underscores its goal of sustainable growth and value generation in the industry.