Independent oil and gas company Afentra has announced that its final acquisition of Angola’s National Oil Company (NOC) Sonangol’s stake in the country’s offshore Block 3/05 will be pushed from June to July 2023.
Sonangol has obtained approval for the license extension in May and is now seeking the necessary government approvals for the transaction.
In April 2022, Afentra signed Sales and Purchase Agreements (PSAs) with Sonangol to acquire non-operated interests in the producing Blocks 3/05 (24%) and 3/05A (4%), as well as exploration Block 23 (40%).
According to Afentra’s update on June 20, gross production levels in Block 3/05 averaged around 18,900 barrels of oil per day in May 2023.
Water injection levels during January to May 2023 averaged approximately 390,000 barrels of water per day. Additionally, production in Block 3/05A at the Gazela Field has been steady at approximately 1,100 barrels per day.
An agreement between Afentra and Angola’s national concessionaire, the National Oil, Gas and Biofuels Agency, has resulted in the extension of the PSA from July 1, 2023, to December 31, 2040.
“Based on the outstanding workstreams and associated timeframes, completion of the transaction is now expected to occur in July 2023, and we are working, together with Sonangol, to extend the long stop date for this acquisition accordingly,” stated the company. Afentra also mentioned that further updates will be provided to shareholders in due course.
To finance the acquisition, Afentra will utilize Reserve Based Lending from independent physical trading and logistics company Trafigura, amounting to $75 million with a 5-year tenure.
