Africa-focused oil and gas company Afentra has signed Heads of Terms with Angola’s National Agency of Petroleum, Gas and Biofuels (ANPG) for a Risk Service Contract covering offshore Block 3/24, its first operated license in the country.
The formal award is expected in the coming months, subject to government approval.
The deal expands Afentra’s offshore footprint from 265 km2 to 810 km2 and marks a significant step in its strategy to build a production base in Angola.
Block 3/24 contains five shallow-water oil and gas discoveries – Palanca North East, Quissama, Goulongo, Cefo and Kuma – as well as the previously developed Canuku field cluster, which produced up to 12,000 barrels of oil per day in the early 2000s.
Afentra will operate the block with a 40% interest, alongside Maurel & Prom Angola (40%) and Sonangol E&P (20%).
Under the Heads of Terms, the partners will have an initial five-year period to review development options and prospectivity, followed by a 25-year production period for commercial discoveries.
Block 3/24 is estimated to hold more than 130 million barrels of oil in place and 400 billion cubic feet of discovered gas resources.
"We are pleased to announce this Heads of Terms and excited to progress towards Operatorship of Block 3/24, which represents the next step in our strategy to build a material production business in Angola. We look forward to reviewing the most efficient development options for the numerous discoveries, utilising the extensive Block 3/05 infrastructure.
“This will provide upside potential to enhance the overall redevelopment plan for the Block 3/05 area where we expect to significantly increase production and reserves, delivering long-term value and cashflows. Furthermore, we see potential for future infrastructure led exploration given the prospectivity of the area,” said Paul McDade, CEO of Afentra.