Afentra, a UK oil and gas company, is in discussions to increase its stake in two Angolan offshore blocks. This involves acquiring interests from partner Etu Energias and intends to use existing cash resources while securing regulatory approvals. Afentra is also working with Sonangol on asset redevelopment to enhance production and reserves, with promising estimates for recoverable oil resources.
Afentra, a UK-based upstream oil and gas company, has confirmed its involvement in discussions to increase its stake in two offshore blocks in Angola. The company is reportedly collaborating with a joint venture partner to negotiate the purchase of interests held by another partner, Etu Energias, in blocks 3/05 and 3/05A.
The company has communicated that there is no guaranteed outcome regarding the acquisition of the Etu Interests. If successful, Afentra plans to fund this transaction using its existing cash resources, which is contingent on several customary closing conditions, including regulatory and governmental approvals.
Currently, Afentra is working alongside Sonangol, the operator of the blocks, and its joint venture partners to enhance redevelopment efforts aimed at increasing production and reserves. The company expressed satisfaction with the ongoing collaboration, emphasizing its commitment to maximizing value from these assets.
As of December 2024, the total net 2P working interest reserves for Block 3/05 are reported at 34.2 million barrels of oil. The company has achieved a reserve replacement ratio of 140% within an 18-month period, with net 2C resources increasing to 13.8 million barrels of oil. Similar estimates for Block 3/05A indicate net 2C resources of 7.1 million barrels.
Block 3/05, which includes eight mature fields discovered in the 1980s, operates through 40 production wells and exports oil via the Floating Storage and Offloading (FSO) vessel Palanca. Angola’s National Agency for Oil, Gas, and Biofuels has identified 30 investment opportunities within the oil sector, spanning multiple blocks and promising future growth.
Afentra’s initiative to increase its stake in the Angolan offshore blocks reflects its strategic focus on enhancing production and reserves in a vital region for oil and gas. The successful acquisition hinges on multiple conditions, including necessary approvals. The company’s ongoing redevelopment cooperation with Sonangol and positive resource assessments further signify its commitment to maximizing the value of its assets in Angola.
Original Source: www.offshore-energy.biz
