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13 Jun 2024

Recent M&A Activity Reflects Growing Interest in Angolan Upstream Market

Recent M&A Activity Reflects Growing Interest in Angolan Upstream Market
With an investment pipeline of $60 billion anticipated over the next five years, Angola has seen robust merger and acquisition (M&A) activity in recent months. The country has set national targets of maintaining oil production above 1.1 million barrels per day through 2027, while increasing the share of natural gas in the energy mix to 25%, with recent M&A activity set to support these goals.

Afentra Completes Acquisition of Angolan Blocks

Upstream oil and gas company Afentra completed the acquisition of non-operating interests in Blocks 3/05 and 3/05A from upstream company Azule Energy in May 2024. The transaction increases Afentra’s stakes in the blocks to 30% for Block 3/05 and 21.33% for Block 3/05A, with 480,000 barrels of crude oil stock inherited as part of the deal. 

Etu Energias Acquires Interests in Blocks 32, 14 and 14K

Angola’s Ministry of Mineral Resources, Petroleum and Gas approved the transfer of multinational energy corporation Galp Energias’ working interests in Blocks 32, 14 and 14K to Angolan oil company Etu Energias in May 2024. Authorized by executive decrees, the transfer comprises a 5% stake in Block 32, a 9% stake in Block 14 and a 4.5% stake in Block 14K. Located in water depths of 1,400 to 2,000 m, Block 32 represents one of the largest producing blocks in Angola. Blocks 14 and 14K – located offshore Cabinda – produce medium light crude oil. 

Afentra Acquires Sonangol’s Interests in Blocks 3/05 and 23

In December 2023, Afentra completed the acquisition of a 14% non-operated interest in Block 3/05 and a 40% non-operating interest in Block 23 from Angolan national oil company Sonangol. The transaction follows a signed sales and purchase agreement between the companies in April of the previous year – restated in July 2023. With the transaction, Afentra inherited crude oil stock to the value of $11.9 million at $75 per barrel.

Petronas Acquires 40% Stake in Block 20

Malaysian multinational Petronas acquired French major TotalEnergies’ 40% interest in Block 20 in September 2023. At a cost of $400 million, the transaction saw TotalEnergies retain operatorship of the block with 40%, with Sonangol holding the remaining 20% interest. The block is home to the Kaminho development – representing the first deepwater project in the Kwanza basin and comprising the Cameia and Golfinho fields – which achieved FID in May 2024. The project is expected to come online in 2028. 

Honorary Mention: Angola’s 2023 Bid Round

In tandem with a series of M&A transactions, Angola concluded its 2023 licensing round in January 2024, featuring 12 onshore blocks in the Lower Congo and Kwanza basins. Up to 53 bids were submitted for the round alone. Qualified operators included energy companies Etu Energias, ACE Energy, Transoceanic, Intank Group, Grupo Simples Oil, ACREP S.A, Walcot Limited and Serinus Energy. Additionally, qualified non-operators included Effimax Energy, Enagol, Sonangol and Afentra.

Angola’s recent slate of M&A transactions have laid the foundation for increased exploration and production activities in offshore blocks, as well as potential new discoveries on onshore assets. The country’s premier industry event – Angola Oil & Gas (AOG), taking place from October 2-3 in Luanda – will unpack the implications of these deals and future opportunities available across the market. Angolan regulatory authorities are expected to outline upcoming block opportunities, while companies active in the sector will showcase latest project developments and partnership prospects. Interested in joining the discussion? Register for AOG 2024 today.

AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; national oil company Sonangol; the National Oil, Gas and Biofuels Agency; the African Energy Chamber; and the Petroleum Derivatives Regulatory Institute, the event is a platform to sign deals and advance Angola’s oil and gas industry. To sponsor or participate as a delegate, please contact [email protected].

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