Africa Energy Corporation does not intend to withdraw from Block 11B/12B. (Image source: Adobe Stock)

Africa Energy Corporation, through its investment in Main Street 1549 Pty Ltd, is anticipating complete ownership of Block 11B/12B offshore the Republic of South Africa, as TotalEnergies EP South Africa BV and QatarEnergy International E&P LLC wants out of the venture 

Both the companies have provided notice to the joint venture partners that they will withdraw from their 45% (Total) and 25% (QatarEnergy) interest. 

CNR International (South Africa) Limited also provided notification of withdrawal of their 20% interest in Block 11B/12B. Under the joint operating agreement, the withdrawing parties assign their interest free of charge to each of the non-withdrawing partners in proportion to the interest of non-withdrawing partners. 

In the recent years, analytics company GlobalData has noted a shift of international oil companies (IOC) from high-risk investments towards lower-carbon interests. 

Largest natural gas discoveries

Africa Energy, which currently holds a 10% interest in Block 11B/12B, does not intend to withdraw. Despite the challenges and delays encountered so far, it remains confident that the Block 11B/12B resources can be commercially developed. The Brulpadda and Luiperd discoveries are the largest discoveries of natural gas resources in South Africa and if developed, could supply a significant portion of the country’s energy needs as it seeks to transition away from coal fired power plants.

The withdrawal of the joint venture partners from Block 11B/12B is subject to all relevant regulatory approvals by South African authorities. Subject to all relevant regulatory approvals, Main Street 1549 Pty Ltd. expects to hold 100% interest in Block 11B/12B. The Company will be focused on the Block 11B/12B Production Right approval and securing offtake customers. 

In March, TotalEnergies, along with QatarEnergy, has signed an agreement with Azinam and Ricocure to acquire participating interests in Block 3B/4B in Orange Basin, South Africa.

Contract discussions on Block KON 15 are ongoing. (Image source: Adobe Stock)

Afentra plc has been officially awarded the onshore Angola license KON 19 by Presidential Decree, which was signed with the Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG) 

Afentra now holds a 45% non-operated interest in KON 19 alongside two local Angolan companies ACREP and Enagol. While ACREP is the operator with 45% interests, Afentra and Enagol remains the non operators with 45% and 10% interests respectively. 

Contract discussions on Block KON 15 are ongoing and continue to make progress. 

Blocks KON 19 and KON 15 are parts of Tender 2023 that ANGP launched last year for the concession of 12 onshore oil blocks in Angola’s onshore Lower Congo and Kwanza Basins.

Significant potential

Spread across 25,000 sq km, the onshore Kwanza basin has remained under-exploited even though its discovery dates back to 1955. Both KON15 and KON19 blocks are high-graded by Afentra as they have good signs of a working petroleum system. The blocks are adjacent to both legacy oil fields that are currently being appraised for potential re-development and existing infrastructure allowing rapid commercialisation.

"We are very pleased to have been formally awarded this new license, which further enhances our strategic position in Angola. The license expands Afentra's footprint in this attractive market and further diversifies our portfolio with a low-cost onshore block with significant potential. We look forward to bringing our technical expertise in support of our local Angolan Operator as we collaborate to define the full potential of this license. We will update the market fully on our onshore strategy and work programme upon completion of the onshore award process," said CEO Paul McDade. 

In June, Afentra completed the Azule acquisition offshore Angola with a 12% non-operating interest in Block 3/05, and 16% non-operating interest in Block 3/05A.

The onshore-focused NAOC is also involved in Nigeria's power generation industry. (Image source: Adobe Stock)

Eni has received formal consent from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the sale of its Nigerian onshore wing Nigerian Agip Oil Company (NAOC) to Oando Plc

Having already obtained all other relevant local and regulatory authorities’ authorisations, this move will allow Eni to proceed to the completion of the transaction for the sale of the onshore-focused NAOC that is also involved in Nigeria's power generation industry, to energy company Oando. 

The transaction is in line with Eni's 2023-2026 Plan, whereby the upstream will supplement the core organically led growth with inorganic high-grading activity, adding resources with incremental value while divesting resources that can offer greater value and opportunities to new owners.

NAOC Ltd participating interest in SPDC JV (Shell Production Development Company Joint Venture - operator Shell 30%, TotalEnergies 10%, NAOC 5%, NNPC 55%) is not included in the perimeter of the transaction and will be retained in Eni’s portfolio. 

Deepwater and LNG focus

Eni will devote its Nigerian focus to deepwater projects and LNG.

According to a GlobalData prediction for 2023-2027, Nigeria will lead Africa in terms of the upcoming capacity in the region with 1,990 ktpa, as the continent might contribute about 18% of the global small-scale LNG liquefaction capacity.

Furthermore, the company is developing plans for economic diversification in the country which include assessing the potential production of agri-feedstock for Enilive biorefineries and various nature- and technology-based projects, such as clean cooking initiatives, to offset emissions.

Eni has been operating in Nigeria since 1962, actively engaging in hydrocarbon exploration and production, as well as power generation. Currently, Eni has a substantial portfolio of assets in exploration and production, with an equity production of approximately 40,000 barrels of oil equivalent per day net of NAOC contribution. Eni also holds a 10.4% interest in Nigeria LNG. 

The acquisition significantly enhances Angola's energy security. (Image source: African Energy Chamber)

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.