Afentra and Etablissements Maurel & Prom (M&P) have agreed to jointly acquire the interest held by Etu Energias in Block 3/05 and Block 3/05A offshore Angola, the buyers announced on Thursday.
Afentra and M&P will each acquire 50% of Etu Energias’ 10% non-operated interest in Block 3/05 and 13.33% non-operated interest in Block 3/05A. The buyers will each pay an initial consideration of USD 23 million, consisting of USD 22 million for Block 3/05 and USD 1 million for Block 3/05A.
The buyers have also agreed to a contingent payment of up to USD 11 million each, subject to conditions linked to oil prices, production performance and the development of existing discoveries. Both companies will fund the transaction from their existing cash resources.
“This transaction marks a further step in the expansion of M&P’s footprint in Angola, a country where we see strong potential for long-term value creation,” said Olivier de Langavant, CEO of M&P.
Paul McDade, CEO of Afentra, noted, “This transaction enhances the alignment within the joint venture and reinforces our exposure to these high-quality production and development assets that continue to perform strongly as the partners demonstrate the ability to realise the upside of these world-class assets.”
Subject to customary conditions and regulatory approvals, the acquisition is expected to close in H2 2025 with an effective date of December 31, 2023. Following the transaction, Afentra and M&P will hold 35% and 25%, respectively, in Block 3/05 and 28% and 33.33%, respectively, in Block 3/05A.
London-listed Afentra is an Africa-focused upstream company specialising in mature assets. Paris-listed M&P is an oil and gas E&P company with assets in Africa and Latin America.
Source: Theenergyyear.com