Galp's interests offshore Angola acquired by local company

PAC Capital Limited has announced the completion of a US$443mn acquisition facility for Etu Energias

The deal involves the acquisition of Galp’s stake in Block 32, Block 14, and Block 14K offshore Angola. This transaction follows the recent completion of a US$3.3bn pre-export facility in Nigeria by PAC Capital. 

This marks Galp's gradual shift from Angola's upstream space, as it continues to remain invested in Namibia, from where it recently reported positive results from Mopane-1X well testing. 

Humphrey Oriakhi, managing director of PAC Capital, said, “This transaction provides the opportunity for another African company to make inroads into these strategic assets, previously dominated by International Oil Companies (IOCs), thereby giving a significant advantage for majority stakes.”

Bolarinwa Sanni, senior director at PAC Capital, said, “This deal is not just a significant milestone for Etu Energias but also a transformative step towards strengthening local ownership and control of key energy assets in Angola. We are proud to have facilitated this landmark transaction.”

The acquisition transaction, which was finalised on the sidelines of the 31st Afreximbank Annual Meetings (AAM) and the third AfriCaribbean Trade and Investment Forum (ACTIF) in Nassau, Bahamas, includes Galp’s 5% non-operating stake in Block 32, 9% non-operating stake in Block 14, and 4.5% non-operating stake in Block 14K.

Etu Energias enters deepwater production

“The close collaboration between the different parties was fundamental to the success of this business, which represents Etu Energias’ entry into deepwater oil production. The conclusion of this transaction demonstrates the resilience of our company and represents a huge step in our strategy to build a profitable and diversified portfolio,” said Edson R. Dos Santos, Etu Energias´s chairman and CEO. “PAC Capital’s expertise and dedication were instrumental in securing this acquisition. Their skilful strategic fund arrangement ensured the successful closure of this complex transaction, positioning us to become a leading player in Angola's oil and gas sector.”

This acquisition significantly enhances Angola's energy security by empowering local companies to own strategic petroleum assets, thereby strengthening the nation’s energy sector. It marks a pivotal moment in the ongoing effort to boost local participation and leadership in the oil and gas industry in Angola. 

The Covid-19 pandemic became a local content enabler for Angola, increasing the involvement of nationals and local petroleum companies since 2020.