By Sully Manupe, in Windhoek
Afentra has made significant progress trying to win upstream assets in Angola. But the company admits that none of the two deals leading to ownership is likely to be consummated by December 31, 2022.
The sale and purchase agreement with Sonangol Pesquisa e Producao S.A. (Sonangol) to purchase non-operating interests in offshore Block 3/05 (20%) and Block 23 (40%), is subject to a number of conditions precedent (the ‘CPs’), including the receipt of governmental approvals and the extension of the Block 3/05 Production Sharing Agreement until at least December 31, 2040. The Company remains in discussion with all relevant parties in this regard, as the Block 3/05 contractor group continues to progress conversations with the ANPG, the country’s oil and gas regulatory body, Afentra notes in a release. “Nevertheless, the PSA extension is now unlikely to be finalised before December 31, 2022 and the Company, together with Sonangol, are working on extending the long stop date for the Sonangol Acquisition in order to facilitate satisfaction of the remaining CPs to enable completion in Q1 2023”.
Afentra also signed an SPA with INA – Industrija Nafte d.d. (‘INA’) to purchase a 4% interest in Block 3/05 and an up to 5.33% interest in Block 3/05A offshore Angola (the ‘INA Acquisition’). ”The transaction is now with the Ministry awaiting Governmental approval, and formal completion is anticipated to occur in early 2023”. In this particular case, “given the progress made to date, there is not considered to be any requirement to extend the long-stop date pursuant to the INA Acquisition at this time, as set out in the Company’s admission document”.
Afentra says that Block 3/05 “production for the first nine months of 2022 has been stable and in-line with expectation at 19,160Barrels of Oil Per Day (BOPD) gross. This is equivalent to ~4,600BOPD net to Afentra upon completion of the Sonangol and INA Acquisitions”. in due course.