Afentra advances in Angolan oil sector with government approval for Azule acquisition

Afentra plc, the upstream oil and gas company focused on strategic opportunities in Africa, has announced a significant advancement in its Angolan operations. The Government of Angola has granted approval for Afentra plc‘s acquisition of interests in two key oil blocks from Azule Energy Angola Production B.V. This approval marks a critical step for Afentra plc in consolidating its presence in the region.

Under the terms of the sale and purchase agreement dated 19 July 2023, Afentra’s wholly-owned subsidiary, Afentra (Angola) Ltd, will acquire a 12% non-operating interest in Block 3/05 and a 16% non-operating interest in Block 3/05A. The transaction, known as the Azule Acquisition, is expected to formally complete in Q2 2024. Afentra plc has committed to providing updates on the deal’s completion and the asset cash flow dating back to the effective date of 1 October 2022.

In a further development, the Angolan government has declared the Punja Development Area in Block 3/05A as a marginal discovery, following a request from the Block 3/05A partnership. This classification triggers favorable fiscal incentives, substantially increasing the commercial viability of this project. The improved terms are expected to significantly enhance the potential returns from the development of this oil block.

Paul McDade, CEO of Afentra plc, commented on the developments: “The Angolan government’s approval of the Azule Acquisition allows us to proceed with the completion of our third transaction in Angola providing Afentra a material equity position in these world-class assets. The improved fiscal terms for the Punja Discovery is another clear indication of the support given by the Government of Angola to parties willing to invest in their oil and gas sector. This further encourages us to continue to work with Sonangol and our joint venture partners to grow production and reserves as we develop the vast potential of both the producing fields in Block 3/05 and the significant discoveries within Block 3/05A.”

The Government of Angola’s approval of the Azule Acquisition and the enhanced fiscal terms for the Punja Discovery significantly bolster Afentra plc’s strategic position within the Angolan oil sector. These developments not only enhance Afentra plc’s asset base but also reinforce its commitment to investing and expanding in the African oil and gas market. As Afentra plc looks towards the future, these advancements lay a solid foundation for further growth and success in the region.