Sonangol Joins Afentra and M&P in Acquisition of Interests in Blocks 3/05 and 3/05A, Offshore Angola
Afentra, the upstream oil and gas company focused on acquiring mature production and development assets in Africa, has provided an update on the previously announced Sale and Purchase Agreement ('SPA') signed with Etu Energias S.A. regarding its interests in Blocks 3/05 and 3/05A, offshore Angola.
As part of the transaction process, Sonangol E&P, the operator of both blocks, has elected to participate in the acquisition of Etu's interests. Following this development, Sonangol, Afentra and Etablissements Maurel & Prom S.A. ('M&P') will jointly acquire Etu's 10% interest in Block 3/05 and 13.33% interest in Block 3/05A offshore Angola.
As a result of Sonangol's participation in the transaction, Afentra (Angola) Ltd has signed a new SPA with Etu to acquire a 3.33% interest in Block 3/05 and a 3.66% interest in Block 3/05A. Completion of the transaction remains subject to customary conditions precedent, including government approval in Angola. The previously announced SPA signed with Etu has been terminated.
Updated Transaction Highlights
- Acquisition of additional interests; 3.33% net in Block 3/05 and 3.66% net in Block 3/05A, offshore Angola.
- Net upfront consideration of US$15.2 million[1].
- Contingent consideration of up to US$6.74 million1,2 across both blocks, linked to a combination of oil price thresholds, production performance, and the successful development of key discoveries.
- Effective date of the transaction is 31 December 2023.
A short supporting presentation has been uploaded to the Afentra website: Etu Transaction Update - Sonangol Joins Acquisition Presentation
The decision by Sonangol E&P, who as national oil company have full pre-emption rights, to jointly acquire Etu's interests alongside Afentra and M&P demonstrates the desire by all parties to build on the strong collaborative partnership that has been formed in Block 3/05 and 3/05A. The partnership, led by Sonangol as Operator of the assets, will continue to invest in the ongoing redevelopment programme that is beginning to unlock the full potential of the assets which will lead to sustained increases in both production and reserves over the coming years.
Afentra continues to pursue its disciplined approach to value creation, leveraging success-based transaction structures and a strong local partnership framework. The Company remains confident in the significant upside potential of Blocks 3/05 and 3/05A and looks forward to continued constructive engagement with all stakeholders.
Paul McDade, Chief Executive Officer of Afentra plc, commented:
'The evolution of the transaction structure to include Sonangol in the Etu acquisition is a welcome development and is a clear demonstration of the collaborative approach that has been achieved within the partnership. The joint acquisition further consolidates and aligns all parties as we work together to unlock the full potential of Blocks 3/05 and 3/05A. This transaction exemplifies Afentra's disciplined strategy of building a high-quality, cash-generative asset base in Africa in close partnership with host governments and local operators.'
Following completion of the acquisitions by Afentra, M&P and Sonangol from Etu, the joint venture partners across both Blocks 3/05 and 3/05A will be comprised as follows:
Next Steps
Completion of the Etu acquisition remains subject to customary conditions precedent, including government approvals in Angola and finalisation of definitive documentation. The Company expects completion in Q2 2026 and will provide further updates in due course.
Source: Afentra
