Three players – the UK-headquartered and AIM-listed Afentra, Etablissements Maurel & Prom (M&P), and Angola’s national oil company Sonangol E&P – have signed off on the acquisition of the interest Etu Energias holds in two offshore blocks in this country located on the western coast of Southern Africa.
Months after Afentra and M&P signed a sale and purchase agreement (SPA) with Etu Energias for its interests in blocks 3/05 and 3/05A off the coast of Angola, the list of participants in the acquisition saw a change with Sonangol’s decision to join in on the action.
Since Angola’s national oil company, as the operator of both blocks, has elected to participate in the acquisition of Etu’s interests, the firm will jointly acquire these stakes with Afentra and M&P in the two blocks.
As a result of Sonangol’s participation in the transaction, a new SPA has been inked with Etu, which enables Afentra to acquire a 3.33% interest in Block 3/05 and a 3.66% interest in Block 3/05A for a net upfront consideration of $15.2 million.
According to the UK player, the contingent consideration of up to $6.74 million across both blocks is linked to a combination of oil price thresholds, production performance, and the successful development of key discoveries.
Paul McDade , Chief Executive Officer of Afentra, commented: “The evolution of the transaction structure to include Sonangol in the Etu acquisition is a welcome development and is a clear demonstration of the collaborative approach that has been achieved within the partnership.
“The joint acquisition further consolidates and aligns all parties as we work together to unlock the full potential of Blocks 3/05 and 3/05A. This transaction exemplifies Afentra’s disciplined strategy of building a high-quality, cash-generative asset base in Africa in close partnership with host governments and local operators.”
The completion of the transaction remains subject to customary conditions precedent, including government approval in Angola and finalisation of definitive documentation. The firm expects the completion of this transaction in Q2 2026.
Afentra highlighted: “The decision by Sonangol E&P, who as national oil company have full pre-emption rights, to jointly acquire Etu’s interests alongside Afentra and M&P demonstrates the desire by all parties to build on the strong collaborative partnership that has been formed in Block 3/05 and 3/05A.
“The partnership, led by Sonangol as operator of the assets, will continue to invest in the ongoing redevelopment programme that is beginning to unlock the full potential of the assets which will lead to sustained increases in both production and reserves over the coming years.”
The company underlines that it remains confident in the significant upside potential of blocks 3/05 and 3/05A and looks forward to continued constructive engagement with all stakeholders.
This acquisition update follows the heads of terms Afentra penned with Angola’s National Agency of Petroleum, Gas and Biofuels (ANPG) for a risk service contract (RSC) related to Block 3/24 , adjacent to blocks 3/05 and 5A.