Afentra announced on 29 October the publication of the Angolan executive decree covering the 3/05A oil block, a further step in the buyout of Etu Energias' interests. According to the London-listed group, the decrees for the two blocks concerned have now been published. The partners can proceed with the novation of the agreements and other formalities, with completion expected in the coming weeks.
This announcement follows that of 6 October, which concerned the decree for block 3/05. Afentra said at the time that it was awaiting the text corresponding to block 3/05A. The regulatory progress therefore relates to a transaction already negotiated, the finalisation of which remains to be completed.
The deal brings together Afentra, Maurel & Prom and Sonangol E&P, the operator of both blocks. Together, they are to take over Etu's interests, namely 10% of block 3/05 and 13.33% of block 3/05A. The agreed split allocates Afentra an additional 3.33 percentage points in the first and 3.66 points in the second.
The group currently holds 30% and 21.33% of these assets respectively, according to its presentation of 6 October. The buyout would thereby strengthen its economic interest in a set-up in which it remains a non-operating partner, while Sonangol retains operational control.
A price subject to adjustments and conditions
The financial terms set out as early as 6 October distinguish an initial price of $15.20 million for Afentra's share and conditional additional payments. Payment on completion is expected to be significantly lower than the initial price, owing to adjustments since the economic effective date set at 31 December 2023.
The nominal ceiling on the additional payments reaches $6.74 million, but only $4.74 million could still become payable. The tranche for 2025, capped at $2 million, has expired. The production threshold had been reached, unlike the trigger linked to the Brent price. These amounts concern Afentra and not the whole buyout of Etu's interests.
Assets undergoing redevelopment
The strengthening comes during the redevelopment of block 3/05. In its operational update of 12 October, Afentra expected the first barrels from Impala-2 in January 2027 and from Pacassa SW in the first quarter of 2027. The timing of the latter well had been revised after operational difficulties requiring a sidetrack.
The partners had also chosen to directly fund Impala-2, with a gross cost ceiling reduced to $60 million. According to Afentra, this arrangement should allow it to participate in revenues from the first barrels. The acquisition would increase its exposure to this programme, whose production timelines remain the group's forecasts.