- UK-headquartered and AIM-listed company Afentra plc has completed the acquisition of interests in two blocks offshore Angola from Croatia’s INA-Industrija Nafte, marking the UK player’s entry into Angola.
- Block 3/05, located in the Lower Congo Basin, consists of eight mature producing fields discovered by Elf Petroleum, now part of TotalEnergies in the early 1980s.
Following a sale and purchase agreement (SPA) from July 2022, Afentra announced the receipt of approval from Angola’s Ministry of Mineral Resources, Oil and Gas in January 2023 for the acquisition of a 4 per cent interest in Block 3/05 and a 4 per cent interest in Block 3/05A offshore Angola from INA-Industrija Nafte. Due to documentation delays, the process took longer than anticipated. However, the UK player announced the completion of the acquisition on Wednesday, 10 May 2023.
As a result, the company believes to be “well positioned” to build a material production business in Angola and contribute to “a responsible energy transition for the country.” The UK player confirmed that Mauritius Commercial Bank (MCB) had entered both the RBL and working capital facilities as the lender to the company. As Trafigura retains an interest in the RBL facility, it will continue as an offtake provider for the Block 3/05 crude.
Afentra expects to sell its first cargo of crude oil in 3Q 2023, monetising the inherited crude oil stock and subsequent production. While Block 3/05 current gross production in April averaged approximately 19,000 bbl/d (net 760 bbl/d), the production in 1Q 2023 averaged 17,206 bbl/d due to downtime experienced through planned restoration works on power generation and the distribution network.
Paul McDade, Afentra’s CEO, commented: “We are very pleased to complete the INA acquisition, and we would like to thank all involved, especially our shareholders, for their continued patience and support. The indicative transaction metrics upon sale of crude inventories speak to the competitiveness with which we have been able to structure this deal and we are pleased to mark the inception of our partnership with Sonangol in Blocks 3/05 and 3/05A.” Block 3/05, located in the Lower Congo Basin, consists of eight mature producing fields discovered by Elf Petroleum, now part of TotalEnergies in the early 1980s. This block has a diverse portfolio of over 100 wells. It produces from around 40 production wells with nine active water injectors. The facilities include 17 wellhead and support platforms and four processing platforms, with oil exported via the FSO Palanca.