Exploration

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.

The joint venture structure promises to accelerate exploration activities in Namibia. (Imag source: Adobe Stock)

Reconnaissance Energy Africa has divested a 20% working interest in Petroleum Exploration License 73 onshore Namibia to BW Energy

This joint venture structure promises to accelerate exploration activities in Namibia and mobilise working capital, with a total potential consideration of US$141mn.

ReconAfrica is currently driving exploration of the onshore Kavango Basin, where it recently spud the Naingopo-1 well targeting the Damara Fold Belt and plans to drill a multi-well exploration programme and acquire a 3D seismic programme in the Kavango Rift Basin.

The company has conducted extensive data and insights into the working petroleum system of the Kavango Basin to help de-risk exploration and identify future drilling targets. As a result of the transaction, BW Energy will participate in two Damara Fold Belt exploration wells and the 3D seismic programme, with the option to participate in two Rift Basin exploration wells over a two-year period. ReconAfrica will retain a 70% working interest in the license, ensuring significant upside for the company if a discovery is made.

Kudu gas field

The deal leverages BW Energy’s existing expertise in oil and gas monetisation in emerging and mature markets. The company is already active in Namibia through an operated stake in the 1.3-trillion-cubic-feet Kudu gas field in the Orange Basin and associated Kudu gas-to-power project, which is currently in its FEED stage and anticipates FID in 2025. The project is set to transform Namibia’s energy matrix through the delivery of 800 MW of gas-fired power for domestic use and regional export. BW Energy also operates the Dussafu Marine license offshore Gabon, home to the Hibiscus and Ruche Field Development set to reach 40,000 barrels per day following the completion of all wells.

The agreement – which includes a $16 million equity investment in ReconAfrica and an additional $45 million in carry payments based on FID – is set to accelerate onshore exploration activities and is the latest in a series of transactions affirming global interest in Namibia’s oil and gas resources. With BW Energy to start drilling at the Kudu gas project in early-2025 – coupled with recent discoveries by Shell, TotalEnergies and Galp in the offshore Orange Basin – Namibia is preparing to witness another wave of investment from global explorers. 

Speaking in an interview in January, Maggy Shino, Petroleum Commissioner of Namibia’s Ministry of Mines and Energy, said that Kudu remains the government's national strategic project.

The acquisition includes interest in 15 OMLs and two main export terminals in Nigeria. (Image source: Adobe Stock)

Chappal Energies has announced that it has entered into a sale and purchase agreement (SPA) to acquire TotalEnergies EP Nigeria Limited's 10% non-operated interest in its onshore and shallow water assets within the SPDC JV in the Niger Delta

The transaction is expected to close by 31 December.

The acquisition includes a 10% interest in 15 oil mining leases (OMLs) and two main export terminals in Nigeria specifically the Forcados and Bonny Terminals that are part of the Shell Petroleum Development Company Joint-Venture (SPDC JV). In this joint-Venture, the Nigerian National Petroleum Corporation Limited (NNPCL) holds a 55% stake, SPDC operates with a 30% stake, and Nigerian Agip Oil Company (NAOC) has a 5% stake. The SPDC JV has previously divested assets as well for increased emphasis on the Nigerian Government's national energy agenda in the remaining OMLs. 

Expanding asset base

The transaction will also see Chappal Energies acquire a 10% participating interest in the three other OMLs within the SPDC JV which are mainly gas producing (specifically OML 23, OML 28 and OML 77). Chappal Energies will have rights to the standalone undeveloped oil reserves within these three OMLs. TotalEnergies, on the other hand, will retain an economic interest in these licenses which currently account for 40% of Nigeria’s LNG gas supply. 

The oil major's senior vice-president - Africa, exploration and production, Mike Sangster, had emphasised on the company's solid footprint in Nigeria, while announcing the start of production from the Akpo West Field in February. 

Aggregate consideration for the transaction is US$860mn. Financing will be provided by a TotalEnergies company entity and/or any financial institution selected by TotalEnergies, Trafigura and a syndicate of international banks.

This strategic acquisition increases Chappal Energies' asset base and adds significant reserves to the company’s balance sheet. The portfolio includes more than 40 producing fields with a network of pipelines, flow stations, processing facilities and two major terminals.

The transaction is poised to bring substantial benefits to stakeholders, including shareholders, employees, local communities, and the national economy. The closing is subject to certain conditions, including all regulatory and contractual approvals.

The company plans to undertake a comprehensive work programme. (Image source: Adobe Stock)

Invictus Energy Limited has provided an update on operations at its 80%-owned SG 4571 licence in Zimbabwe’s Cabora Bassa Basin

The SG 4571 Licence containing Mukuyu Discovery has been renewed for further three years. 

In March, priliminary composition analysis from the Mukuyu-2 well indicated the presence of high quality natural gas with minimal impurities. Since then, the company has been preparing for the next phase of its appraisal programme and work towards the monetisation of the Mukuyu gas discoveries. 

Comprehensive work programme

Geo Associates, the company’s 80%-owned subsidiary and holder of Special Grant 4571 has received notification that its application to extend the tenure of the SG 4571 licence for a further three years has been approved by the Mining Affairs Board. This will be followed by publication in the Government Gazette. The exploration licence for the third period for SG 4571 runs to June 2027. The company plans to undertake a comprehensive work programme for the third three-year exploration period including 3D seismic acquisition and additional exploration/appraisal drilling. The company is able to apply for a production special grant licence at any stage. 

Drilling at the Mukuyu-2 appraisal well in SG 4571 commenced on 20 September 2023.