Independent energy firm Afentra expressed interest in partnering with local oil and gas firms to acquire mature assets in Angola during a panel at the Angola Oil&Gas 2024 conference on October 3.
Sponsored by multinational commodities company Trafigura, the panel – Strategic Partnerships: Financing Upstream Oil Operations – discussed the evolution of Angola's upstream sector amid efforts to revitalize production from mature fields. Moderated by Elmano Costa, Senior Lawyer at Morais Leitão Legal Circle, the session explored the growing role of independent players in driving project developments and maximizing oil production.
Earlier this year, Afentra completed the acquisition of 12% and 16% non-operating interests in offshore Blocks 3/05 and 3/05A, respectively, from Azule Energy. The company worked closely with Trafigura to mobilize $100 million toward the acquisition, along with leveraging existing debt facilities and cash flow from its balance sheet
"We see great opportunities to acquire mature assets in Angola, reduce emissions from those assets and further develop them,” said Paul McDade, CEO of Afentra, adding, "We anticipate more large companies divesting in the future, with independents stepping in to acquire mature fields. We aim to continue working alongside Angolan companies, combining efforts to secure additional assets. The challenge lies in convincing investors to finance these projects."
"Having the big players sell to independents is the future. It doesn’t make sense for TotalEnergies or Chevron to hold onto mature fields with declining production, so it’s a natural cycle to sell them to independent players, and Trafigura provides them with financial protection," added Matthieu Milandri, Head of Upstream Finance at Trafigura, who worked closely with Afentra on the acquisition.
Taiwo Okwor, Vice President of Investment at the Africa Finance Corporation (AFC), emphasized the role sustainability and emissions reduction in securing funding for Angolan projects, as well as the importance of integrated oil and gas projects with strong infrastructure components.
"We select projects in Angola based on their commitment to reducing emissions and reinjecting associated gas. We provide capital, but closely monitor emissions and explore sustainable financing options,” said Okwor, adding, "Connecting infrastructure makes a project more bankable and attractive to financiers."
Trafigura is involved in the funding of several large-scale projects in Angola, including the 60,000-barrel-per-day Cabinda Refinery, whose first phase is set to come online in 2025, and the Lobito Railway Corridor, which links Zambia and the Democratic Republic of Congo to the Port of Lobito to enable the export of copper, cobalt and other critical minerals.
"Building large-scale infrastructure projects is a lengthy and expensive undertaking for a country. Our role, alongside other partners like banks, is to provide expertise and security to make these projects viable,” said Milandri.
"The goal of these infrastructure projects is to boost regional trade and connect Angola to southern Africa. Ultimately, we want to close the infrastructure deficit and bridge the economic gap in the region,” concluded Okwor.
Distributed by APO Group on behalf of Energy Capital&Power.
