LUANDA, Angola, November 29, 2023/ -- Africa Finance Corporation (AFC) (www.AfricaFC.org), the leading infrastructure solutions provider in Africa, has invested US$60 million in Etu Energias (formerly Somoil), the largest private Angolan oil company, as part of a drive to boost indigenous participation in the continent’s energy sector.  

The investment is part of a $190 million debt facility to support Etu Energias in acquiring oil and gas reserves co-owned by France’s TotalEnergies and Japan’s Inpex Corporation. Following the acquisition, Etu Energias will own a 20% stake in deepwater Block 14 and 10% of deepwater Block 14K, oil reserves located 100 kilometres offshore from Cabinba, northern Angola. Both blocks are operated by US-based company, Chevron.

The acquisition doubles Etu Energias' net production rate from 9,000 barrels per day (bpd) to 19,000 bpd, cementing the company’s position as Angola’s leading indigenous upstream oil and gas company and a key player in the evolving energy sector.

“AFC is unwaveringly committed to propelling the growth of indigenous operators in the energy sector across the continent,” said AFC President and Chief Executive Officer, Samaila Zubairu. “Our financial backing aligns with AFC's broader mission to support the sustainable development of Africa’s vast resources, whilst retaining value on the continent. We look forward to working with Etu Energias to achieve Angola’s energy transition objectives.”

Etu Energias Chief Executive Officer Edson Rodrigues Dos Santos said: “We are pleased to be collaborating with AFC on this noteworthy acquisition. We see it as the first of more to come in a growing relationship. This acquisition marks a significant step as we aim to enhance our operational capabilities by providing a distinctive opportunity for local players like us, especially in offshore operations where international oil companies have historically held dominance.”

AFC is stepping up investment in Angola’s energy sector following deployment of approximately US$165 million in Sonangol, Angola’s state-owned oil company, between 2021 and 2022, and a recent US$100 million investment for the construction of the Cabinda oil refinery in northern Angola alongside Gemcorp Holdings Limited (GHL) and African Export-Import Bank (Afreximbank).

The senior debt facility for Etu Energias was structured as a club loan, with AFC playing an active role as a co-mandated lead arranger along with the African Export-Import Bank (Afreximbank). Banco Africano de Investmento (Banco BAI) also collaborated in the financing of the club loan.