Offshore staff
LONDON — Afentra (Angola) has signed a sale and purchase agreement (SPA) with Azule Energy to acquire a 12% interest in Block 3/05 and 16%1 of Block 3/05A, both offshore Angola.
The firm price is $48.5 million with deferred contingent payments of up to $36 million subject to future oil price, production and development conditions.
To support the transaction and achieve a suitable balance of equity interests in Block 3/05, Afentra has agreed with Sonangol to amend the terms of their SPA of April 20, 2022.
It means that Afentra will reduce the interest it is taking from the state oil company in the concession from 20% to 14%, with associated lower firm and contingent considerations of $56 million and up to $35 million, respectively.
Production from Block 3/05 was about 19,100 bbl last month and 18,000 bbl/d over the first half of the year, benefiting from restoration works during the first quarter and light well intervention activities.
Going forward, intervention will focus on acid wash and stimulation across the Oombo, Pacassa, Palanca and Bufalo fields, while at the same time, long-term testing continues on the Gazela Field at rates of about 1,200 bbl/d, to assess future low-cost development options.
Other plans include additional well perforations and installation of artificial lift on selected production wells, while a gas management program has started to assess a solution for the produced gas to reduce emissions.
07.20.2023
