CAPE TOWN (Reuters) -Oil and gas company Afentra has signed a framework agreement for its first operated license offshore Angola in a block with proven resources, the London-listed company said on Thursday.
Block 3/24 contains five oil and gas discoveries in shallow water with several exploration prospects identified, and is close to Afentra’s existing producing oil fields and undeveloped discoveries in Blocks 3/05 and 3/05A.
“We look forward to reviewing the most efficient development options for the numerous discoveries, utilising the extensive Block 3/05 infrastructure,” CEO Paul McDade said in a statement.
Afentra told Reuters in July that Block 3/05 was producing around 21,400 barrels per day (bpd) and had potential to increase that to 30,000 bpd, and even 40,000 bpd as the company looks to ramp up water injection to boost oil extraction.
Signed with Angola’s National Oil, Gas and Biofuels Agency (ANPG) on the sidelines of an energy conference in Luanda, the new heads of terms allow for an initial five-year period to review the development potential for existing discoveries and exploration prospectivity.
The government is expected to formally award the license for Block 3/24 in the coming months, with Afentra as operator holding a 40% interest, alongside Maurel & Prom Angola S.A.S with a similar share and Angola’s state-owned Sonangol E&P having the remaining 20%.
“We look forward to building on the successful collaborative working relationship with Block 3/05 operator Sonangol to ensure we deliver the full potential of this multi-billion barrel area,” McDade said.
(Reporting by Wendell Roelf; editing by Philippa Fletcher)
