The Africa Finance Corporation (AFC) has undertaken a strategic investment of $60 million in Etu Energias, Angola’s largest private oil company, forming part of a $190 million debt facility.
This initiative aims to facilitate the company’s acquisition of oil and gas reserves jointly owned by TotalEnergies and INPEX Corporation.
Upon the completion of this acquisition, Etu Energias will secure a 20% stake in deepwater Block 14 and a 10% interest in deepwater Block 14K, located approximately 100km off Cabinda’s northern coast.
These blocks are presently operated by Chevron. This transaction is expected to effectively double Etu Energias’ net production rate, elevating it from 9,000 to 19,000 barrels per day, thereby solidifying its status as Angola’s leading indigenous oil and gas company.
Samaila Zubairu, President and CEO of AFC, highlighted the institution’s commitment to fostering the growth of indigenous energy companies across Africa.
He expressed AFC’s dedication to supporting the sustainable development of Africa’s substantial resources while ensuring value retention within the continent.
Etu Energias’ CEO, Edson Rodrigues Dos Santos, underscored the significance of this acquisition in augmenting their operational capacities.
He emphasized the distinctive opportunity it presents for local players like Etu Energias, particularly in offshore operations where international oil companies have traditionally held dominance.
The senior debt facility structure, orchestrated as a club loan, includes AFC as an active co-mandated lead arranger alongside the African Export-Import Bank and Angola’s Banco BAI, signifying a collaborative effort to facilitate this strategic investment in Angola’s oil sector.
