Afentra Wins Small, But the Sonangol Prize Is Still Out of Grasp

Afentra has reported that it has not yet concluded its acquisition of some of Sonangol’s asset in Angola, but it has won Government’s approval to acquire minor interests from a company named INA-Industrija d.d (INA).

The London headquartered independent has now, in the bag, 4% interest in Block 3/05 and 4% interest in Block 3/05A offshore Angola, pursuant to a sale and purchase agreement between INA and Afentra’s wholly-owned subsidiary, Afentra (Angola) Ltd, dated 19 July 2022.

While these properties are good to have, the chase for Sonangol’s equity in Block 3/05 (20%) and Block 23 (40%), is the big deal in Afentra’s sights. A 20% entry into Block 3/05 will give Afentra some 4,000Barrels of Oil Per Day on a net basis, going by the Block’s current output. The sale and purchase agreement for this transaction is subject to a number of conditions precedent, including the receipt of governmental approvals and the extension of the Block 3/05 Production Sharing Agreement until at least December 31, 2040. Afentra says it “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 discloses that it has agreed with Sonangol to extend the long-stop date from 31 December 2022 to 31 March 2023. “The receipt of approval from the Ministry of Mineral Resources, Oil and Gas for the INA Acquisition is a key step in this process and we now look forward to completing the acquisition 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. It 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.”


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