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The next step, he remarked, will involve build- for petroleum products [and] the relationship
ing the NOC’s capacity to serve as an upstream between the state and Sonangol, which we
operator. have to resolve,” he was quoted as saying by Ver
“The transformation of Sonangol into a true Angola.
oil well-operating company is also part of the “We are still working on the Sonangol brand,
preparation for partial privatisation, because so which will change from a hydrocarbon company
far, it operates only 2% of [Angola’s] wells, and to an energy company,” he added. ™
the medium-term target is 10%,” he said.
The NOC will also have to wait for the
Angolan government to do its part, Azevedo
added. “There are other steps that do not
depend on Sonangol, that depend on the exec-
utive [branch], such as the [domestic] subsidy

Afentra eyes Angolan offshore blocks

as part of West Africa expansion plan

ANGOLA AFENTRA, an upstream oil and gas company All eight of these blocks are located in Ango-
listed on the AIM market of the London Stock la’s offshore zone, in depths ranging from shal-
Exchange, has submitted a non-binding expres- low-water to ultra-deepwater. Two of them
sion of interest (EOI) to state-owned Sonangol – namely, Blocks 3/05 and 4/05 – are already in
to purchase interests in Block 3/05 and Block 23 production.
in Angola. The NOC expects to award concessions
“This is in line with Afentra’s strategy of for all of the offshore blocks by November 8.
acquiring assets across West Africa with solid According to previous reports, the sales may
low-cost production, proven reserves and raise as much as $2bn.
significant upside,” the UK company said in a The sales are designed to improve Sonangol’s
notice on Friday, October 8. upstream performance, in line with the compa-
“The process is at an early stage. However, if ny’s business development strategy. However,
Afentra is ultimately successful in this acquisi- a banking source told Reuters earlier this year
tion, it would be classified as a reverse takeover that mounting arrears might be one of the fac-
transaction in accordance with AIM Rule 14.” tors underlying the decision to sell off stakes in a
In June 2021, Sonangol initiated an asset number of offshore assets.
sales process to divest some of its holdings in Non-payment of about $1bn in cash calls
eight blocks across its portfolio, including up to and other sums owed to Western partners
8.28% of Block 18, 10% of Block 15/06, 15-20% “has boosted Sonangol’s process of divestment
of Blocks 3/05 and 4/05, 30-65% of Block 5/06 in some of these [offshore] blocks,” the source
and 30-70% of Blocks 23, 27 and 31. claimed. ™

Block 3/05 is one of the blocks in which Sonangol is reducing its stake (Photo: Maurel et Prom)

P8 www. NEWSBASE .com Week 41 13•October•2021