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Savannah Moves to a Fuller Control of Stubb Creek Oil Field

Savannah Energy, a UK minnow, has signed separate Share Purchase Agreements (SPAs) with Sinopec International Petroleum Exploration and Production Corporation (SIPEC) and Jagal Ventures Limited (Jagal) to acquire 100% of the outstanding share capital of Sinopec International Petroleum Exploration and Production Company Nigeria Limited

SIPEC’s principal asset is a 49% non-operated interest in the Stubb Creek oil and gas field, located onshore Akwa Ibom State, Nigeria. “An affiliate of Savannah, Universal Energy Resources Limited, is the 51% owner and operator”, Savannah explains.

Savannah holds 62.5% equity interest in Universal Energy. A take over of SIPEC will see Savannah controlling Stubb Creek field, a marginal hydrocarbon accumulation which produces 2,700Barrels of Oil Per Day (BOPD).

“The SIPEC SPA will see Savannah Energy SC Limited (a wholly owned subsidiary of Savannah) acquire a 75% equity interest in SIPEC for cash consideration of $52Million, payable on completion and subject to customary adjustments for a transaction of this nature from 1 September 2023”, Savannah notes in the release..

The Jagal SPA will see Savannah Energy SC Limited acquire a 25% equity interest in SIPEC for cash consideration of $7.5Million (without adjustment), payable on completion, plus $2Million in deferred cash consideration payable in eight equal quarterly instalments post-completion. The transaction consideration is expected to be funded through a new bank debt facility arranged by The Standard Bank of South Africa Limited and the existing cash resources of the Company. Completion under each of the SPAs is subject to the parties’ satisfaction of customary conditions precedent, including certain regulatory approvals, as well as a mechanism ensuring that completion under both SPAs occurs simultaneously.

As at year end 2023, SIPEC had an estimated 8.1MMstb of 2P oil reserves and 227 Bscf of 2C Contingent gas resources. SIPEC oil production is estimated at an average for 2024 of 1.4 Kbopd. Savannah’s Reserve and Resource base will increase by approximately 46 MMboe following completion of the SIPEC Acquisition.

Savannah says it anticipates that, within 12 months following completion of the SIPEC Acquisition, Stubb Creek gross production should increase by approximately 2.7Kbopd to approximately 4.7KBOPD through implementation of a de-bottlenecking programme.


With $64Million To Spare, AOC Aims for More of Namibia’s Pie

By Toyin Akinosho

Africa Oil Corp. has offered to acquire from minority shareholders in Impact Oil and Gas Limited up to 8.0% of the issued shares in Impact.

This is expected to lead to AOC holding 39.1% of Impact, as the former currently holds a 31.1% shareholding in the latter.

The move, announced March 18, 2024, is the kind of transaction that any small producing independent, with some decent cash flow, should pay some attention to.

The significance of the proposed buy is derived from Impact’s 19.5% stake in Blocks 2912 and 2913B, the two Namibian offshore leases where the French major TOTAL has discovered the giant Venus field and adjoining accumulations.

With 39.1% holding in Impact, AOC will have around 7.8% of these two acreages.

But we are getting ahead of ourselves.

TOTAL is in the process of concluding a farmin into Impact ‘s stakes in these acreages, a transaction which, when concluded, will leave Impact with 9.5% of these two blocks. The farmin is awaiting the consent of Namibian authorities.

Should that be consummated, and should AOC conclude the 8% acquisition, AOC will have around 3.9% of Blocks 2912 and 2913B.

TOTAL’s Venus accumulation (two billion barrels of oil equivalent recoverable reserves) has moved up the scale of the most likely-to-be -developed of all the several discoveries made in Southern Africa in the last four years.

AOC says that the Offer it is making is at a price of $ 0.728 per Impact share, for a consideration of up to approximately $64Million, which implies a valuation of USD 805 million for 100% of the issued share capital of Impact.

“The share purchase is conditional upon completion of the farm down transaction for Impact’s Namibia assets announced on January 10, 2024. The Offer is made to select minority shareholders and is open for acceptance until April 5, 2024. Africa Oil is under no obligation to purchase any specific number of shares in Impact”.

Roger Tucker, AOC Chief Executive Officer, commented: ” At no upfront cost, we retain exposure to the Venus development, and to the significant follow-on upside potential on Blocks 2912/2913B. Venus is expected to add significant reserves and production to Africa Oil’s portfolio from the late 2020s through the 2030s”.



TOTAL Takes More Stake in South Africa as It Sweeps for Region wide, “Greater Venus” Development

By Toyin Akinosho

French major TOTALEnergies has grabbed more stake in the South African part of the prolific Orange Basin, in a quest for accelerated appraisal to unlock a commercial project at the field perimeter of the Venus discovery offshore Namibia and encompassing South Africa.

The European giant signed, together with its partner QatarEnergy, an agreement to acquire participating interests in Block 3B/4B, offshore South Africa, from Africa Oil Corp., Azinam (a wholly owned subsidiary of Eco Atlantic Oil and Gas) and Ricocure.

The transaction is coming less than three months after the company took more share in the Namibian part of the same basin.

Just like its last grab in Namibia TOTAL is taking these South African interests along with its partner, Qatar Energy.

The deal had been widely anticipated for some time by analysts. Africa Oil Corp., Eco Atlantic and Ricocure belong to a class of companies who, as a rule, acquire assets and work towards wooing well-heeled companies like TOTAL, to purchase, large, operating stakes in those properties. In effect, these companies treat hydrocarbon assets, in frontier basins, as items of real estate.

Following completion of the transaction, TOTALEnergies will hold a 33% participating interest in Block 3B/4B and assume operatorship, while QatarEnergy will hold a 24% interest.

The remaining interests will be held by existing license holders, Africa Oil (17%), Ricocure (19.75%) and Azinam (6.25%). The transaction is subject to final approvals from relevant authorities.

In Namibia in November 2023, TOTALEnergies s signed an agreement to acquire an additional 10.5% participating interest in block 2913B and an additional 9.39% participating interest in block 2912, from Impact Oil and Gas.

THE INSPIRATION FOR TOTAL’S CONTINUOUS GRAB of assets in both countries, is the Venus discovery and its adjoining prospective enclave.

The 2Billion Barrel (recoverable oil equivalent reserves) Venus accumulation, stored in 3,000metres below the seabed in the South Atlantic Ocean, has inspired, for TOTAL, a regionwide exploration and appraisal strategy in Southern Africa.

TOTAL said  at the Africa Energy Week in November 2023 that it would acquire new seismic data and drill several appraisal wells as well as exploratory upsides.
“Venus has opened a new chapter in TOTALEnergies exploration, with very significant running room over our vast exploration acreage in the area”, said Clement Fleury, lead author of a geoscience paper focusing on the follow up of the play opening discovery.
The company also said it would be launching a regional exploration drilling programme “in the coming years in both Namibia and South Africa”.
Mr. Fleury’s paper added that TOTAL  was working on “intensive exploration and appraisal efforts on blocks 2912 and 2913b in Namibia and taking advantage of its leading acreage position in South Africa”, to sweep the region for leads, prospects and developments.

Located within the prolific Orange basin, 200 km off the western coast of South Africa, Block 3B/4B covers an area of 17,581 km2. Block 3B/4B is adjacent to the DWOB license operated by TotalEnergies (50%) alongside QatarEnergy (30%) and Sezigyn (20%).

“Following the Venus success in Namibia, TotalEnergies is continuing to progress its Exploration effort in the Orange Basin, by entering this promising exploration license in South Africa”, said Kevin McLachlan, Senior Vice-President Exploration of TOTALEnergies.


Gabon Formally Takes Over Carlyle’s Assets, Elbows Out M&P

By Toyin Akinosho, in Lagos

The Government of Gabon, after exercising pre-emptive rights over the sale of all of Carlyle owned Assala Energy’s E&P assets in the country to Maurel et Prom (M&P), has finally signed a formal sales and purchase agreement with the latter.

So, it’s done.

The transaction was sealed February 15, 2024, between the state hydrocarbon firm,  Gabon Oil Company (GOC) and Assala Energy Investments Ltd. (Carlyle) regarding GOC’s acquisition of Assala Energy Holdings Ltd and all of its subsidiaries“.

M&P no longer has any line of sight to those assets again. They belong to the Gabonese government.

“This signing has occurred in the context of GOC’s sovereign right of pre-emption”, M&P says in a  statement released  February 16, 2024, “and supersedes the SPA signed by M&P and Carlyle on 15 August 2023”.

The Paris headquartered, Indonesian independent first informed the market of its move to take over Assala’s assets in June 2023, announcing it as a “possible offer for Assala Energy Holdings Ltd”.

M&P reported at the time: “Assala is an onshore oil upstream and midstream company in Gabon with working interest production of approximately 45,000Barrels of Oil Per Day (BOPD)  in 2022”. That volume of crude was extracted from some of six production licences that Assala had operated in Gabon since it entered the country in 2017.  The then proposed acquisition also included a non-operator interest in one production licence, as well as three onshore exploration licences also in Gabon, held since 2019.

M&P says it “confirms and reiterates its wish to remain a trusted partner of the Republic of Gabon, as evidenced by its presence and its projects in the country for nearly 20 years now”.

The company insists it is in a very healthy financial position, “with an expected net cash position at the end of March 2024 (approximately $270Million in cash and cash available, versus $266Million in gross debt), and significant borrowing capacity”.

The planned take over of over 40,000BOPD output in Gabon was meant to increase M&P’s stakes in Central Africa and boost the company’s Pan African Asset base. M&P holds 20% of Seplat Energy in West Africa (Nigeria) and in East Africa (Tanzania), it has recently acquired 20% of the 107Million standard cubic feet per day Mnazi Bay asset, through the purchase of some of the shares of Wentworth Resources, its partner in Mnazi Bay.


TOTAL Grabs More Stake in Juicy Namibian Blocks, Moves towards Venus Development

TOTALEnergies has signed an agreement to acquire an additional 10.5% participating interest in Namibia’s block 2913B and an additional 9.39% participating interest in block 2912, from Impact Oil and Gas.

Both acreages are operated by the French major. “TOTALEnergies’ intention is to share this additional participating interest with its strategic partner and joint venture member QatarEnergy”, the company says in a release.

“This transaction not only increases our share in the Venus discovery and remaining prospectivity on these blocks, but also represents a key step toward the development of the Venus discovery by consolidating the partnership and securing financing of all partners which will add value to all stakeholders”, said Patrick Pouyanné, Chairman and Chief Executive Officer at TOTALEnergies.

After completion of these transactions, which will be subject to customary third-party approvals from the Namibian authorities and joint venture parties, TOTALEnergies would own a 45.25% interest in block 2913B containing the Venus discovery, and a 42.5% interest in block 2912. Impact will retain a 9.5% interest in each license.

“As per this agreement, Impact will be reimbursed for the past costs incurred for these interests, through a $99Million payment at closing. Impact will also be carried for its remaining interests until Impact receives the first sales proceeds from hydrocarbon production, secured via a repayment mechanism based on Impact’s share of production”.



FAMFA Oil Gets Six Blocks Offshore Sierra Leone

The government of Sierra Leone has awarded six offshore oil blocks to F. A. Oil Limited as part of its fifth licensing round.

The country’s Ministry of Energy and Power signed the petroleum license agreement in the capital, Freetown, on Dec. 4, 2023, the government says in a release.

The acreages, including blocks 53, 54, 55, 71, 72 and 73, cover an area of about 9,700 square kilometers in the Atlantic Ocean, with water depths ranging from 100 to 3,000 metres.

President Julius Maada Bio, who took office in 2018, is betting on transactions like this to boost the country’s economy and attract more foreign investment.

  1. A. Oil Limited is a subsidiary of F. A. Group, a conglomerate founded in 1991 by Apostle Folorunso Alakija, one of the richest women in Africa. Alakija, who is the CEO and chairman of F. A. Oil Limited, said she was grateful for the opportunity to participate in the oil and gas sector in Sierra Leone and assured that the deal will benefit both parties.

Famfa Oil Ltd holds 60% interest in Chevron operated Oil Mining Lease (OOML) 127, which produces about 100,000Barrels of Oil Per Day,  the second largest deepwater producing field in Nigeria.

Sierra Leone has attracted the interests of several Nigerian players in recent years, including Innoson Oil & Gas who has operatorship rights on the shallow water block 2020a.

NUPRC Accused of Favouritism in Marginal Field License Dispute

By Lukman Abolade, Senior Correspondent

Nigeria’s Upstream Regulatory Commission (NUPRC) has been accused of favouritism and undue interference in the allocation of a license to exploit the Ekpat Marginal Field, located in Oil Mining Lease (OML) 67 to MultiPlan Nigeria Limited after initially awarding the bid to another company, Magnumflo Nigeria Limited.

The dispute originated from the controversial 2020 bid round for Marginal fields. During this bid round, Magnumflo Resources, led by Executive Director Robert Bakre, submitted a bid for EKPAT OML 67. Initially, the Department of Petroleum Resources (DPR), now defunct, awarded Magnumflo and another company, Duport Midstream, shares of 57.11% and 48.89% respectively, for the Ekpat marginal field.

Unable to raise the expected signature bonus, Bakre told Africa Oil+Gas Report that he secured an investment agreement with Igho Okotete, the Managing Director of MultiPlan, after failing with investors outside of Nigeria.

A copy of the agreement seen by Africa Oil+Gas Report, Magnumflo agreed to allocate 60% of its 57.11% equity in OML 67 to MultiPlan before the ₦3.9Billion signature bonus was paid to the Central Bank of Nigeria (CBN) on its behalf.

The Memorandum of Agreement (MOA) emphasized collaborative development enshrined in a Joint Operating Agreement (JOA) to be signed after the payment to define roles, responsibilities, and mode of governance but it was never signed by MultiPlan.

Bakre said after MultiPlan had paid the signature bonus, a company based in Switzerland where he had sought funding from indicated interest to fund the asset to first oil and gas in lieu of but Okotete rejected the offer.

A month after the payment, Bakre approached Okotete to request payment for his share of the expenses incurred in the initial development of the asset, but Okotete refused.

Bakre explained, “It was the issue of financing his stake in terms of recurring expenditure, such as diesel, office expenses, and cost of goods, which amounted to 194Million naira, his portion. We were paying out of pocket. That’s where the argument started. He said No, and that’s where the argument started.

“He called us to his office one time, said the amount was too high. Could we negotiate instead? He suggested paying ₦100Million now and ₦50Million from first oil and gas. He also proposed capping our monthly expenditure. We agreed to everything, but the next day, instead of receiving the payment, I received an email stating that he needed to audit all our expenditure because he didn’t want any artificially generated receipts.”

The insistence of Magnumflo for Multiplan to sign the JOA and the latter’s request to audit the expenditure caused a stalemate between the parties and halted communication.

Multiplan told Africa Oil+Gas Report that the ₦194Million bill presented by the Magnumflo was a case

of extortion. “During the bid round, I bid, they did not award us any bid, although they initially told us that we won, and we did different checks but when they awarded, they did not award our own to us, so they gave to people and we found out that some of the people could not pay. These people (Magnumflo) came to me and said I should pay for them and they would give me 60% equity and I agreed. I paid $9.6Millon converted to naira about ₦4Billion, after paying the money, I went to the US to see my family, by the time I came back, they changed that they spend $550,000 and I should bring 60% of it”.

“Before I knew it, they have written a letter, cancelling the agreement I had with them, so I went to Court for about five months and court issued judgement in my favour that they did not have the right to cancel the agreement. The agreement was that after paying the signature bonus and we would work together but they are fraudulent, but they said they spent $550,000 in less than a month? Is there no due process of funding? I have the 60% of their 57.11%, they cannot do anything without my permission”.

When asked about the sudden intervention of the NUPRC in the commercial dispute between his company and Magnumflo, OKotete said he had written to the Commission because he felt he was being extorted in the name of Federal government.

The situation reached a tipping point when NUPRC, the regulatory body overseeing the oil and gas sector, allegedly interfered in the commercial dispute. Despite Magnumflo’s insistence on resolving the matter through arbitration, NUPRC reportedly favoured Multiplan’s stance, leading to a suspension of an arbitration process set up to resolve issues between the companies.

Magnumflo’s Bakre said: “Unbeknownst to us as at January of 2022, he (Okotete) had already written to NUPRC  he wanted to cease and repudiate the agreement with us because we were trying to extort money from him. By June, a week to the time they’re handing the license, that’s when we got to know about the letter. So NUPRC sat on the letter from January, for six months to June, they didn’t tell us anything, until a week to the day they were supposed to award a license to awardees, we got a letter from them which they call for a meeting that there’s an issue with our license, and that we should come for a meeting.

“When we got there, they said we’re not going to give you a license because this man is saying that he wants his money back. You guys need to resolve yourself. Return his money to him, so that we can give you your license and that was one week to go, how are we going to raise 3.9Billion naira in one week?

“They literally jumped into the arena. I don’t even know why NUPRC was entertaining his letters, because as far as I understand, we are the awardees, we were the ones that they should be communicating with, they had no business with Multiplan, only God knows what had happened to the point where they were entertaining him”.

After the one-week ultimatum, he noted that NUPRC did not give his company the license to the asset, insisting they pay back Multiplan’s money, and even threatened to withdraw their award saying they had applied to the presidency, to withdraw the award in ‘public interest’.

And so we went to NUPRC and said, Listen, you’re telling us to pay him back his money and you are writing this kind of letter, which investor in his right mind, do you think will give us money? What we need from you is a letter of comfort, to give us time to pay this money back. And just make clear to the investor that wants these things. And by the way, we were in arbitration to resolve this, because that was part of our agreement in the MOA. NUPRC did not even allow the arbitration process to go on when they jumped into the arena.

NUPRC’s threat to withdraw Magnumflo’s award heightened the company’s precarious position, prompting them to appeal for understanding from the commission and the challenges of securing investments amid the ongoing dispute.

Multiplan’s Okotete said: “At that point NUPRC called and intervened, they asked them to look for the money in  90 days and pay me back. NUPRC had written to withdraw the award because the company that paid is Multiplan. So, they explained that they would give the money back to me, till it elapsed, they did not pay, that was when they cancelled it and re-awarded it to me since we are the beneficiary and we bid too during the bid round,” he said.

He further noted that the license was awarded this year but he could not remember the specific month during an interview with Africa Oil+Gas Report.

“The license award was issued this year, it was the new Minister that issued it to us, the old arrangement was cancelled by the previous government, but the license and issuance were pending till the new Minister took office, because the Permanent Secretary could not sign. The award was withdrawn when we complained to NUPRC,” he noted.

In a letter dated 30, May 2023 signed by the Commission’s Chief Executive, Gbenga Komolafe, NUPRC conveyed a notice of withdrawal to Magnumflo.

According to the Commission, it noted that Magnumflo had ‘failed to provide consideration for the award, based on the legal principle that consideration must move from the promise’.

The NUPRC then re-awarded the 57.11% initially of Magumflo to MultiPlan.

Before withdrawing the award from Magnumflo, Africa Oil+Gas Reports found that Multiplan and Duport Midstream, another party involved, had already formed a Special Purpose Vehicle (SPV) named Ekpat Producing JV Limited.

The SPV with registration number 2014956, was created on December 28, 2022 which falls into the ultimatum given to the warring parties to resolve their dispute.

NUPRC’s alleged interference in favour of MultiPlan adds a layer of complexity to the commercial dispute between the companies. The regulatory body, tasked with overseeing the oil and gas sector, is now being accused of overstepping its mandate by entertaining grievances from one party over the other.

Magnumflo insists on being granted the license as the rightful recipient and also requests sufficient time for refunding MultiPlans’ signature bonus paid on its behalf, or alternatively, the reinstatement of their original agreement.

“What we want is that we should give us an opportunity to pay him back his money, if he says no, he really likes the asset, he will stick it up and work with us, then we want our 40% back, we are not disputing his 60%. But the issue is, if we’re going to work this asset, we need to work it properly. We have to have agreements in place that will ensure that corporate governance must be adhered to.

We are in court at the moment, the basis of going to court was to stop them from doing what they have done. And they’ve now done. The case will come up for hearing on December 14th,” Bakre said.

Africa Oil+Gas Report contacted the NUPRC to explain the reasons for interfering in a commercial dispute between two partners and eventually awarded the marginal field to Multiplan, the commission said ‘the government must also continue to send the message that investments in the oil and gas sector is secure and partnerships will be protected’.

NUPRC added that it received an approval from the President to award residual fields ‘to companies who participated in the bid round and demonstrated proof of funds. Multiplan entities met the criteria (and had won an asset directly in the bid round) and nominated this particular entity for the award of the asset, having paid the signature bonus’.

“The Commission will be urging the court currently hearing the case to follow the precedent laid down by the Federal High Court It is high time Nigerian courts cease to allow companies that lack the financial capacity to frustrate the development of petroleum assets. The government did equity between the parties by engaging in a year-long mediation process that failed to yield any fruit,” the Commission explains.

Tanzanian Government to Grab Higher Share in 100MMscf/d Gas Producing Acreage

“TPDC can purchase a 20% production interest in Mnazi Bay, increasing its ownership to 40% in the project. The joint operating agreement will be amended…”

Paris headquartered junior, Maurel et Prom (M&P), has signed an agreement with the Tanzanian government, that leads, it says as “a positive step towards receiving the approvals to complete the acquisition” of all existing shares of Wentworth Resources, a producer of natural gas in the country’s Mnazi Bay region.

The company says the deal strengthens its existing long-term partnership with the state hydrocarbon firm: Tanzania Petroleum Development Corporation (TPDC).

Mnazi Bay Complex is a conventional gas field, producing l103Million standard cubic feet per day of gas, (103MMscf/d) which satisfies about half of Tanzania’s domestic market. It is located onshore in the Mtwara region of Southern Tanzania, operated with 48.06% share by M&P Exploration and Production Tanzania Ltd.

Wentworth Resources, headquartered in the UK, is a partner in the project, with a 31.9% stake. TPDC holds the remaining 20%.

M& P’s agreement with TPDC is structured as a ‘call option’, which provides a pathway for TPDC to increase its ownership by up to 20% in the production interest (the Call Option) of the Mnazi Bay project.

“As part of this agreement, M&P has received the required pre-emption waiver from TPDC and Tanzanian government’s approval for the acquisition, and only the final consent from Tanzania’s Fair Competition Commission (FCC) remains outstanding, which is expected to be granted before the Jersey Court sanction hearing”, M&P says in a statement.

“As the acquisition is to be implemented by means of a scheme of arrangement pursuant to Article 125 of the Jersey Companies Law, and given the approvals received, Wentworth has made arrangements for the Jersey Court to consider and if, thought fit, sanction the Scheme at a court sanction hearing to be held on December 19, 2023.

Following this date, M&P will take ownership of Wentworth and acquire its 31.94% direct and indirect interest in Mnazi Bay.

Subsequent to the closing of the acquisition, M&P expects TPDC to execute the Call Option whereby TPDC can purchase a 20% production interest in Mnazi Bay. As a result, M&P will hold a 60% ownership and TPDC will hold a 40% ownership in Mnazi Bay. The joint operating agreement will be amended to reflect new partnership conditions, and will allow TPDC to appoint secondees to participate in the operations of the Mnazi Bay field.

The acquisition shall be funded by the £63Million placed in escrow as part of the acquisition announced on 5 December 2022. Upon execution of the Call Option, TPDC will contribute its share of the acquisition consideration, and Wentworth’s cash balance and corporate winding down costs will be shared between M&P and TPDC.

Tanzania Approves Assignment of Afren’s Former Interest to Octant

Tanzania’s Minister of Energy has approved the assignment of 74% interest in the Tanga block from Afren Tanzania Ltd. to Octant Energy Tanzania Ltd., in accordance with Section 86(2) of the Petroleum Act 2015.

The parties Petrodel (26%) and Octant (the operator – 74%) can now move into the final three-year period in which they plan to reprocess the 3D seismic survey of Tanga acquired in 2013.

“The Tanga block is optimally located as it includes a deep basin with a very thick sedimentary section that has the potential to host several source rock intervals and reservoir/seal pairings”, Petrodel says in a release. “Potential petroleum plays recognised to date are Lower Cretaceous sands deposited in deltaic to shallow marine environments, Upper Cretaceous submarine fans, Eocene shelf sands and Miocene fluvial and deltaic sands”, the company explains. “Both structural and stratigraphic traps have been identified by previous mapping campaigns”.

Oil seeps and shows encountered in previous wells drilled on the nearby Pemba Island attest to the oil potential of the block and surrounding area.  Previous interpretations have indicated the likely presence of several giant (>100 MMB) prospects within the Tanga block.

“Petrodel had been a first mover in Tanzania and was awarded Tanga, Latham & Kimbiji exploration licences under competitive tender”, remarks Michael J Prest, the company’s Founder and Chief Executive. “We farmed out an interest to Afren (now defunct) and so we are delighted with what is a most positive and significant development and we look forward to working with our partner Octant in realising Tanga’s significant potential.”

Petrodel was awarded Tanga, Kimbiji and Latham licenses in Tanzania in 2006. Tanzania is home to sub-Saharan Africa’s third largest gas resources, with reserves estimated at 57.5Trillion cubic feet.



Etu Energias Secures $60MM AFC Loan for Block 14 Acquisition

Angola’s largest homegrown independent, Etu Energias (formerly Somoil), has secured a $60Million senior debt facility from Africa Finance Corporation (AFC) to acquire oil and gas reserves co-owned by France’s TOTALEnergies and Japan’s INPEX Corporation.

In January 2022, Inpex announced that it hadagreed to sell, jointly with TOTALEnergies, all shares in Angola’s Block 14 B.V. held by INPEX Angola Block 14 Ltd. (IAB14), a wholly owned subsidiary, to Etu Energias. Through IAB14, INPEX owned 49.99% of the shares in Angola Block 14 B.V., an affiliate company of TOTALEnergies, thereby indirectly owning a 9.99% participating interest in Offshore Angola Block 14 and 4.99% participating interest in Lianzi field in the Offshore zone distributed equally between the Republic of Angola and the Republic of the Congo where it had participated in the development and production of crude oil

The $60Million investment by AFC  is part of a $190Million debt facility to support Etu Energias in acquiring the assets, expected to double the company’s net production rate from 9,000 barrels per day (BOPD) to 19,000BOPD, cementing the company’s position as Angola’s leading indigenous upstream oil and gas company and a key player in the evolving energy sector.

“The senior debt facility for Etu Energias was structured as a club loan, with AFC playing an active role as a co-mandated lead arranger along with the African Export-Import Bank (Afreximbank). Banco Africano de Investmento (Banco BAI) also collaborated in the financing of the club loan”, AFC says in a release.

AFC says it is stepping up investment in Angola’s energy sector following deployment of approximately $165Million in Sonangol, Angola’s state-owned oil company, between 2021 and 2022, and a recent $100Million investment for the construction of the Cabinda oil refinery in northern Angola alongside Gemcorp Holdings Limited (GHL) and African Export-Import Bank (Afreximbank).


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