Angola Oil: M&A activity picking up

After a few years of relative calm, M&A activity in the Angolan oil industry is picking up steam. In recent weeks, a number of deals have been announced involving international oil companies (IOCs), small independents and local players. One of the most significant transactions was the acquisition by Angolan independent Somoil of a 20% interest in Block 14 held by TotalEnergies jointly with Inpex. The sale was approved by the Angolan Ministry of Mineral Resources and Petroleum through Executive Decree 424/22, of September 8th, 2022. Operated by Chevron, Block 14 has mature fields which have been producing since 1999 with a present output of around 45.000 barrels per day. Somoil is the biggest and most active Angolan homegrown upstream operator with a portolio of stakes in 14 operated and non-operated blocks.
 
Meanwhile London-listed Afentra is in the process of purchasing from Croatian INA – Industrija Nafte a 4% interest in Block 3/05 and a 5.33% interest in Block 3/05A, both operated by Sonangol P&P. These transactions will build upon the earlier (April 2022) acquisition of a 20% interest in Block 3/05 from Sonangol, which will take Afentra’s combined interest in the Block to 24%. The acquisitions are still subject to Angolan regulatory approval, which Afentra expects to occur before the end of the year. Block 3/05 production is currently sitting at just under 20.000 barrels per day but has material growth potential.
 
Concurrently with Afentra’s acquisitions it is anticipated that the Block 3/05 and 3/05A licenses will be extended to 2040 by the Angolan government under improved commercial and fiscal terms to stimulate investment and boost production. These blocks represent Afentra’s first foray into Angola.
 
Finally, the Angolan petroleum regulator ANPG has just announced that Block 33/21 is available to be awarded by direct negotiation following an expression of interest submitted by the joint venture T-North Trading and Brubell Investimentos. Other interested companies are invited by ANPG to apply for this block (as operator or non-operator) until the end of September. Block 33/21 is located in offshore Lower Congo Basin.