The initialling marks a significant step forward to securing Block KON4. (Image source: Adobe Stock)

Aiming to acquire an operated interest onshore Kwanza basin in Angola, Afentra plc has initialled a risk service contract (RSC) for Block KON4

The initialling marks a significant step forward to securing Block KON4. Under the terms of the proposed KON4 RSC, Afentra will be Operator with a 35% equity interest. The Block offers both short cycle, low-cost production opportunities linked to field redevelopment alongside low-cost near-term exploration potential similar to that being pursued in KON15 and KON19. The contract will now progress through the formal governmental approval process, and the company will provide a further update to the market once the agreement has been fully executed and signed.

Paul McDade, Chief Executive Officer of Afentra plc, said, "The initialling of the KON4 RSC is a significant step in our continued strategy to build a material position in onshore Kwanza basin in Angola. While this marks the beginning of the formal approval process, we are already working closely with our partners in the contractor group to prepare for an efficient review of the block's existing oil fields and the potential for early development opportunities. In addition, we will be bringing our significant experience in the use of eFTG data, which is currently being acquired across the basin, to understand the full exploration potential of KON4 as well as our other licenses KON15 and KON19.

"The addition of the KON4 license to our existing onshore licenses will represent a compelling opportunity to work with local Angolan companies to both revitalise historic oil fields with modern production and development techniques as well as understand the full exploration potential of this underexploited basin where exploration activities stopped over 40 years ago."

Covering 1,387 sq km, Block KON4 has seen the discovery of 11 oil and two gas fields, producing more than 90 mmboe to date. The block features the Quenguela Norte field - the largest onshore discovery to date - estimated to hold over 200 mmbbls of discovered oil in place. The field achieved peak production of 12,000 bopd, with 42 mmbbls recovered before it was eventually shut-in and abandoned in 1999. This represents an opportunity to unlock significant value through the reactivation of legacy oil fields, supported by modern technology and re-development techniques that have advanced considerably since the fields were last in production decades ago. In addition, the Block's proximity to the Luanda refinery and the existing road infrastructure could allow early production and export to the refinery.

KON4 also provides low-cost, near-field exploration opportunities that further enhance Afentra's footprint and strategic optionality in the onshore Kwanza basin. The three blocks together offer a complementary portfolio with exposure to a diverse range of play types - across both post-salt and pre-salt petroleum systems - as well as opportunities to appraise and re-develop multiple discovered but abandoned oil fields.

The companies' continued collaboration will fundamentally reshape Nigeria’s energy landscape. (Image source: Heirs Energy)

Heirs Energies Limited and Renaissance Africa Energy Company have expressed mutual commitment to strategic collaboration following a high-level courtesy visit by Osa Igiehon, CEO of Heirs Energies, to Renaissance’s leadership team, led by Tony Attah

The meeting, which marked the first formal engagement between the two companies post-Renaissance’s successful transition, focused on mutual priorities and shared commitment to advancing Nigeria’s oil and gas sector through indigenous leadership and innovation.

Speaking during the visit, Osa Igiehon emphasised the significance of indigenous companies leading Nigeria’s energy transformation. “We are happy to connect with the leadership of Renaissance and congratulate them on their successful deal and transition,” said Igiehon. “As indigenous firms, we all have a duty to the continued development of the industry. The thinking and how we approach things will be different now, as we’re both indigenous companies committed to Nigerian excellence and driving unprecedented production growth.”

The CEO highlighted the natural synergy between the two organiations and the transformative potential of their collaboration. “Heirs Energies and Renaissance are closely linked, and we’re looking forward to continued collaboration that will not only benefit our companies, but fundamentally reshape Nigeria’s energy landscape. Together, we have the capability and commitment to accelerate production across our assets and drive the kind of innovation that will position Nigeria as a global energy leader.”

Tony Attah, Managing Director of Renaissance Africa Energy Company, expressed enthusiasm for the partnership, stating: “We are equally happy to connect and engage with Heirs Energies. This collaboration represents a significant step forward as we pursue our shared vision for the industry.”

He emphasised Renaissance’s commitment to driving transformational change across the energy value chain, “Renaissance is on a journey to drive increased production and development across the entire value chain, and partnering with like-minded indigenous companies like Heirs Energies is fundamental to achieving these objectives.”

The collaboration between these two leading indigenous energy companies signals a new era of homegrown expertise and innovation in Nigeria’s oil and gas sector. Both companies bring complementary strengths and shared values that position them to accelerate production growth through innovative approaches, develop local capacity and expertise across the energy value chain, drive sustainable industry practices that benefit Nigerian communities, leverage indigenous knowledge and understanding of local operating environments, and create synergies that enhance operational efficiency and market competitiveness.

Heirs Energies Limited is Africa’s leading indigenous-owned integrated energy company, committed to meeting Africa’s unique energy needs while aligning with global sustainability goals.  Having a strong focus on innovation, environmental responsibility, and community development, Heirs Energies leads in the evolving energy landscape and contribute to a more prosperous Africa.

Afentra has entered into a SPA with Etu for its 50% share of the acquisition. (Image source: Adobe Stock)

Afentra will jointly acquire, alongside Etablissements Maurel & Prom S.A. (M&P), Etu Energias SA 10% interest in Blocks 3/05 and 13.33% interest in Block 3/05A offshore Angola

The company has entered into a sale and purchase agreement with Etu for its 50% share of the acquisition, awaiting customary conditions including government approval. 

With this acquisition, Afentra is prioritising restoring the very material upside of this multi-billion barrel offshore asset through a solid joint venture partnership. It is focusing on consistent value creation through disciplined transaction structures, combining modest upfront consideration with success-based contingent payments aligned to oil price and asset performance.

Paul McDade, chief executive officer of Afentra plc, said, "We are pleased to have signed this SPA with Etu Energias, providing Afentra with additional interest on similar terms to our previous transactions in Blocks 3/05 and 3/05A. 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. The structure of the transaction reflects our disciplined approach to capital deployment, combining a modest upfront payment with a value-linked contingent consideration. We look forward to continuing to work closely with Sonangol and M&P to deliver the material upside in these assets providing long-term value for all stakeholders."

Libya produced 1.4 million bpd in December last year

In March 2008, Libya produced 1.75 million barrels of oil per day (bpd). Since then, thanks to political instability, it has never reached that figure again

Will 2025 be the year Libya goes back to its peak crude oil production?

The country is the richest in terms of oil reserves in Africa, and its offshore oil and gas sector is a cornerstone of its energy industry.

In the last few years, some significant developments have begun to shape the Libyan oil market, which could signal positive news for the industry. 

Recent developments in offshore fields like Bouri, Bahr Essalam, Sabratha, and Al Jurf, alongside new exploration initiatives, highlight Libya’s efforts to bolster offshore production through well intervention and infrastructure upgrades.

In fact, in December last year, Libya produced 1.4 million bpd, which is its best performing figure since 2013.  The country has ambitions to reach 1.6 million bpd by year end. 

A key development is the February resumption of gas production at Well CC18 in the Bahr Essalam offshore field, operated by Mellitah Oil and Gas (a joint venture between Libya’s National Oil Corporation (NOC) and Eni).

This restart likely involved well interventions such as coiled tubing or acid stimulation to address reservoir issues like scale buildup, ensuring consistent gas flow to the Mellitah treatment plant for domestic and European markets.

Similarly, the Sabratha Compression Project, in its execution phase with startup planned for late 2025, aims to enhance gas production.

Compression projects often require interventions like gas-lift optimisation to maintain well productivity, underscoring the role of advanced techniques in Libya’s offshore strategy.

The Bouri Gas Utilisation Project, another significant initiative, focuses on increasing gas output from the Bouri field, one of Libya’s largest offshore assets.

Operated by Eni and NOC, this project involves installing equipment to optimise production, likely supported by interventions such as perforating or chemical treatments to counter declining reservoir pressure.

Eni’s Structures A&E Project, with drilling set for mid-2025, channels gas from two offshore fields to Mellitah.

This project, involving new platforms and subsea infrastructure, will likely require well interventions like hydraulic fracturing to optimise new wells and ensure long-term productivity.

The adoption of AI-driven technologies by Eni suggests potential advancements in intervention efficiency, such as real-time monitoring to guide coiled tubing or wireline operations.

In January 2025, NOC launched its first exploration bid round in 17 years, offering 22 onshore and offshore blocks, including areas in the offshore Sirte Basin.

This initiative, attracting interest from companies like Repsol and BP, signals future offshore development.

New wells will eventually require interventions like well testing or stimulation to bring them online efficiently, building on Libya’s estimated 48 billion barrels of oil reserves, much of which lies offshore.

However, political instability poses significant risks. Only last month, Libya’s eastern-based government threatened a force majeure on oil fields and ports, following attacks on NOC facilities.

This echoed a 2024 shutdown that halted 700,000 bpd, impacting offshore fields like Al Jurf.

Such disruptions necessitate well interventions to restore production post-shutdown, as seen in Al Jurf’s history of workovers after prolonged closures.

Despite these challenges, Libya’s US$3–4bn investment plan for 2025 prioritises offshore infrastructure and interventions to achieve its production targets, reinforcing the sector’s critical role in the nation’s energy landscape.