Africa Finance Corporation Invests $60 Million to Boost Angola’s Indigenous Oil & Gas Production
Luanda, Angola, 29 November – Africa Finance Corporation (AFC), 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 Investimento (Banco BAI) also collaborated in the financing of the club loan.
About AFC
AFC was established in 2007 to be the catalyst for private sector-led infrastructure investment across Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.
Sixteen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 42 member countries and has invested US$12.7 billion across Africa since inception.
About Etu Energias
Etu Energias is the largest private, 100% Angolan energy company headquartered in Luanda, Angola. It recently changed its vision to becoming the premier integrated energy company – symbol of a Global Angola. The corporation’s primary business include Exploration, Development, Production, and Marketing of hydrocarbons; Distribution of Derivatives, Lubricants; Renewable Energies particularly solar with a strong commitment to sustainable practices, and proximity to the communities. Etu Energias is at the forefront of shaping the energy landscape, achieving high levels of performance for a better future, aiming to produce the energy for the growth of Angola. For more information, visit our website www.etuenergias.co.ao.
Media Enquiries:
Yewande Thorpe
Communications
Africa Finance Corporation
Mobile : +234 1 279 9654
Email : yewande.thorpe@africafc.org
Djidi-Ann Santos
Director of External Affairs, Communication & Image
Etu Energias
Mobile: + 244 167 340
Email: Djidi-Ann.Santos@etuenergias.co.ao