Sirius Petroleum and Somoil have officially signed a sale and purchase agreement for stakes in three blocks offshore Angola for $335.5 million.
Sirius and locally owned Somoil will have 8.28% in Block 18, 10% in Block 31 and 25% in Block 27 under the deal with Sonangol P&P. The first two blocks are producing around 160,000 barrels per day gross, providing about 15,500 bpd net to the two companies.
Bobo Kuti, CEO of Sirius, said the acquisitions were “in line with our strategy to build a high-quality portfolio of African producing and development assets. We are excited by the long-term growth upside that these assets present and the scale that they bring to the Sirius platform.”
Kuti went on to say the company had a “very strong working partnership” with Somoil. The two companies will work together on the completion of the acquisition and to build “a significant presence together in Angola”.
The two companies expect to sign up new debt facilities to finance the deal, although plans are not yet settled.
The companies will pay $170mn for the 10% stake in Block 31, which BP Angola operates. It has four fields producing 80,000 bpd via the PSVM facility.
Gross 2P/2C reserves are 275mn barrels, with another 516mn barrels of gross 2C resources. New developments on the block would require sustained high oil prices, Sirius said, of more than $75 per barrel.
The two will pay $165mn for an 8.28% stake in Block 18, which BP Angola also operates. This holds the Greater Plutonio complex, with Platina starting up in 2021.
Gross production is 80,000 bpd with gross 2P/2C reserves of 220mn barrels. Growth at this block would also require high oil prices.
The third part of the deal is Block 27, a deepwater exploration licence in the Kwanza Basin. Sirius described it as known for its gas potential.
The effective date of the deal would be April 2022 and they expect completion to take place this year.
Sirius and Somoil’s agreement matches earlier announcements. Afentra agreed to pay up to $130mn, largely for a producing stake in Block 3/04. Sungara, meanwhile, agreed to pay up to $500mn for a stake in Block 15/06 and some stakes in exploration acreages. The latter company also took a stake in Block 27.
Sirius is also in the midst of buying into Nigeria’s OML 65, in a deal backed by trader Trafigura. This is producing around 10,500 bpd, with gross 2P reserves of 51mn barrels.