Afentra, a London-listed oil and gas independent, has agreed to buy shares in two offshore blocks in the Lower Congo and Kwanza Basins from Angola’s government oil giant, Sonangol. The deal includes an $80 million upfront payment for shares in Block 3/05 and Block 23, offshore Angola, and marks the entry of the UK independent into the southern African country.

Afentra could pay up to $50 million in contingent payments for Block 3/05 and $500,000 for Block 23 under the terms of the agreement, in addition to the $80 million upfront cash commitment. Afentra will own a 20% non-operated interest in Block 3/05 and a 40% non-operated interest in Block 23 under the terms of the SPA. Sonangol will retain a 30% operating ownership in Block 3/05 while keeping a 20% non-operating stake in Block 23.

“This highly accretive transaction gives Afentra exposure to a high-quality asset base, underpinned by strong cash flow from stable and long-life production and 20 million barrels of net 2P reserves,” said Afentra CEO, Paul McDade.

“We are delighted to have agreed terms with Sonangol and signed the SPA for our entry into Block 3/05, Lower Congo Basin, and Block 23, Kwanza Basin in Angola. This transformative deal marks our first acquisition since launch last year, and sees the company enter Angola, a major oil and gas jurisdiction with significant opportunities ahead to build a material business and positively impact the energy transition in Africa,” added McDade.