LONDON: Afentra plc, the AIM-listed oil and gas entity with a focus on African assets, has announced the Angolan government’s approval for its acquisition of interests in two oil blocks from Azule Energy Angola Production B.V.
The deal, which involves a 12% stake in Block 3/05 and a 16% stake in Block 3/05A, is now set for completion in the second quarter of 2024.
The company’s subsidiary, Afentra (Angola) Ltd, had entered into a sale and purchase agreement with Azule on 19 July 2023. With the government’s green light, Afentra is poised to finalize the transaction, promising to update stakeholders on the deal’s completion and the asset cash flow effective from 1 October 2022.
Additionally, the Punja Development Area in Block 3/05A has been designated as a marginal discovery by the Angolan government, following a petition from the block’s partnership. This classification triggers fiscal incentives that are expected to substantially increase the project’s commercial viability.
Commenting on the update, CEO Paul McDade said: “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.”