Afentra Engages in Discussions to Increase Stake in Angolan Offshore Blocks

Afentra is in discussions to acquire stakes in Angolan offshore blocks 3/05 and 3/05A from Etu Energias, with no guarantee of completion. The company strives to enhance production alongside Sonangol, reporting substantial reserves and resources in these blocks. Angola presents multiple investment opportunities in the oil sector.

Afentra, a UK-based upstream oil and gas company, is currently in negotiations to increase its stake in two offshore blocks in Angola. The company has confirmed its discussions with one of its joint venture partners regarding the acquisition of interests from another partner, Etu Energias, in blocks 3/05 and 3/05A. Specifically, these stakes are 10% for block 3/05 and 13.5% for block 3/05A,

Afentra highlighted that while negotiations are ongoing, there is no guarantee that the acquisition will be finalized. Should it proceed, the company plans to finance the purchase using its existing cash resources, with the transaction subject to customary closing conditions, including necessary regulatory approvals.

In parallel, Afentra continues to collaborate with Sonangol, the operator of blocks 3/05 and 3/05A, on a redevelopment strategy aimed at enhancing production and reserves from these assets. The company expressed satisfaction with the cooperative efforts to maximize value from the properties since its entry into Angola in May 2023.

As of December 2024, Afentra’s total net 2P working interest reserves for Block 3/05 stand at 34.2 million barrels of oil, reflecting a reserve replacement ratio of 140% over the past 18 months. Consequently, the net working interest for 2C resources has risen to 13.8 million barrels (gross 46 million barrels). For Block 3/05A, the company estimates net 2C resources at 7.1 million barrels (gross 33 million barrels).

Block 3/05 features eight mature fields first discovered by Elf Petroleum in the early 1980s, with production currently occurring from approximately 40 wells. This block includes numerous platforms and facilities, with oil exports facilitated via the Floating Storage and Offloading unit, Palanca. The National Agency for Oil, Gas, and Biofuels in Angola has reported that the country offers 30 investment opportunities across the oil sector, including 11 blocks in permanent offers and six onshore blocks.

In summary, Afentra is actively negotiating to increase its stake in two significant offshore blocks in Angola, with discussions currently ongoing with one of its joint venture partners. The potential acquisition, contingent on regulatory approvals, aims to enhance the company’s existing asset base and is part of a broader strategy to boost production and reserves. Additionally, Angola remains an attractive environment for investment opportunities in the oil sector.

Original Source: www.offshore-energy.biz