Africa Finance Corporation, the top infrastructure solutions provider in Africa, has invested $60 million in Etu Energias to support local involvement in the energy sector.
Etu Energias, formerly Somoil, is the biggest private oil company in Angola. This investment aims to enhance indigenous participation.
This move also aligns with Africa Finance Corporation’s goal to strengthen Africa’s energy sector by empowering local companies.
Africa Finance Corporation invested $60M as part of a $190M support for Etu Energias to buy oil and gas reserves.
The acquisition includes a 20% stake in Deepwater Block 14 and 10% of Deepwater Block 14K, located 100 kilometers offshore from Cabinba, northern Angola.
US-based Chevron manages these blocks.
After the acquisition, Etu Energias will increase its net production rate from 9,000 to 19,000 barrels per day.
This solidifies Etu Energias as Angola’s top oil and gas company and also a significant player in the changing energy sector.
While speaking on this, AFC President and Chief Executive Officer, Samaila Zubairu said,
AFC’s Commitment to Driving Indigenous Growth
“AFC unwaveringly commits to driving the growth of indigenous operators in the continent’s energy sector.”
“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 further added,
“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.
“This is especially in offshore operations where international oil companies have historically held dominance.”
The Africa Finance Corporation is increasing its investment in Angola’s energy sector.
They invested around $165 million in Sonangol, the state-owned oil company, between 2021 and 2022.
Additionally, AFC, along with Gemcorp Holdings Limited and African Export-Import Bank (Afreximbank), recently invested $100 million in building the Cabinda oil refinery in northern Angola.
The loan for Etu Energias was set up as a team effort, with AFC and Afreximbank leading the way. Banco BAI also joined in supporting the financing.
Founded in 2007, the Africa Finance Corporation aims to boost private sector investment in infrastructure across Africa.
AFC has 42 member countries and has invested US$12.7 billion across Africa since inception.