Fossil Energy – Transactions
Afentra (Angola) has signed a sale and purchase agreement (SPA) with Azule Energy Angola Production (Azule) to buy additional stake in two oil blocks offshore Angola.
In addition, the UK-headquartered company – Afentra plc – made changes to its deal with Angola’s state-owned oil and gas company Sonangol for one of these blocks.
Under the SPA, Afentra will buy a 12% stake in Block 3/05 and a 16% interest in Block 3/05A.
The deal includes a $48.5m fixed payment as well as deferred contingent payments totalling up to $36m, subject to changes in oil prices, production levels and development requirements.
Afentra forayed into the Angolan oil and gas space in May this year by acquiring a 4% stake in Block 3/05 and Block 3/05A from INA-Industrija Nafte, a Croatian company.
Concurrent to the SPA with Azule, Afentra has reached an agreement with Sonangol Pesquisa e Produção (Sonangol) to amend the deal they signed in April 2022.
Under the new agreement with Sonangol, Afentra will buy a 14% stake in Block 3/05 instead of 20%.
Afentra said the amended agreement with Sonangol is aimed at supporting the SPA with Azule and ensuring that an ‘appropriate balance of equity interests in Block 3/05’ is maintained.
Both transactions are expected to close in the fourth quarter of 2023.
