Afentra Eyes Bigger Slice of Angola’s Offshore Oil Pie

In a move that’s sparking waves across the energy sector, UK-based Afentra, an AIM-listed oil and gas heavyweight, is doubling down on its African ambitions. The company has confirmed it’s in advanced talks to boost its stake in two offshore Angolan blocks, 3/05 and 3/05A, alongside one of its joint venture (JV) partners. The target? Acquiring the interests currently held by Etu Energias, which owns 10% of Block 3/05 and 13.5% of Block 3/05A. While the deal isn’t set in stone, Afentra is already crunching the numbers, ready to tap into its cash reserves to seal the transaction—pending regulatory nods, of course.

This isn’t just another corporate shuffle. It’s a strategic play in a high-stakes game where Afentra is betting big on Angola’s untapped potential. The company has been laser-focused on Africa since its entry into Angola in May 2023, and this latest maneuver underscores its commitment to unlocking value in the region. But let’s not get ahead of ourselves—Afentra is quick to remind us that the deal hinges on a slew of closing conditions, including government approvals. Still, the buzz is undeniable.

Collaboration is Key: Afentra and Sonangol’s Synergy

Behind the scenes, Afentra is working hand-in-hand with Sonangol, Angola’s state-owned oil giant and the operator of Blocks 3/05 and 3/05A. Together, they’re crafting a redevelopment plan designed to turbocharge production and reserves. “We’re thrilled with the progress we’re making alongside Sonangol,” Afentra shared in a statement. “Our joint efforts are all about maximizing the value of these assets.”

And the numbers don’t lie. As of December 2024, Block 3/05 boasts net 2P working interest reserves of 34.2 million barrels of oil (mmbo), with a reserve replacement ratio of 140% over 18 months. Meanwhile, Block 3/05A is no slouch, with net 2C resources estimated at 7.1 mmbo. These blocks are no newcomers to the oil game—Block 3/05, for instance, houses eight mature fields discovered by Elf Petroleum (now part of TotalEnergies) back in the 1980s. Today, it’s a hive of activity, with 40 production wells, nine water injectors, and a network of 17 wellhead platforms and four processing platforms. Oil flows out via the FSO Palanca, a floating storage and offloading vessel that’s become a linchpin of Angola’s offshore operations.

Angola’s Oil Sector: A Goldmine of Opportunities

Afentra’s move comes at a pivotal moment for Angola’s oil sector. The National Agency for Oil, Gas, and Biofuels (ANPG) has flagged 30 investment opportunities, spanning 11 blocks in permanent offers, six onshore blocks, and nine blocks up for grabs in the 2025 bidding round. For Afentra, this is more than just a chance to expand its portfolio—it’s an opportunity to cement its position as a key player in Africa’s energy landscape.

But let’s not forget the bigger picture. As the world grapples with the energy transition, companies like Afentra are walking a tightrope, balancing traditional oil investments with the need to future-proof their operations. For now, though, the focus is clear: maximize output, optimize reserves, and stay ahead of the curve.