UK-headquartered upstream oil and gas company Afentra has secured approval from the Government of Angola to acquire 12% and 16% stakes in offshore Blocks 3/05 and 3/05A, respectively.
In July last year, Afentra`s wholly owned subsidiary, Afentra (Angola), signed a sale and purchase agreement with Azule Energy Angola Production (Azule) to acquire the minority stakes in the two offshore blocks.
With the government approval now received, Afentra will work with Azule to finalise the formal completion of the transaction in this quarter.
Once complete, the deal will increase Afentra’s stakes in Blocks 3/05 and 3/05A to 30% and 21.33%, respectively.
The company also announced that the Government of Angola has declared the Punja Development Area in Block 3/05A as a marginal discovery, following a request from the Block 3/05A partnership.
This approval will extend the applicable fiscal incentives to the discovery, boosting the commercial value of the potential development.
Afentra 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.”
