Offshore staff
LONDON — Angola’s government has approved Afentra’s acquisition from state oil company Sonangol of a 14% participating interest in Block 3/05, and a 40% participating interest in Block 23, both offshore Angola.
This follows an amendment in July to the original sale and purchase agreement in April 2022. Afentra expects the acquisition to complete by year-end 2023.
The government approval process for Afentra to purchase further interests in Block 3/05 (12%) and Block 3/05A (16%) from Azule Energy remains ongoing, but the company is hopeful of resolution in the current quarter.
The acquisitions would lift Afentra’s equity interests to 30% in Block 3/05 and 21.33% in Block 3/05A, with net production of about 6,000 bbl/d.
Following publication in May of an executive decree formally approving the extension of the term of the Block 3/05 PSA to Dec. 31, 2040, a subsequent recent decree has approved revised fiscal terms.
These should improve the economics of the PSA, as set out by ERCE Equipoise in an independent report to Afentra.
11.10.2023
