Recent M&A Deals Showcase Sub-Saharan African Upstream Drive

In Q1 and Q2, 2024, oil and gas acquisitions primarily targeted southern African assets, focusing on frontier exploration and LNG projects. New market entrants from the Gulf and regional companies highlight a trend of leveraging hydrocarbons to secure Africa’s energy access and promote gas as a transition fuel.

Azule Energy Acquires Rhino Resources’ Namibian Assets

Angolan independent energy company Azule Energy signed a farm-in agreement with exploration company Rhino Resources Namibia to acquire a 42.5% interest in Block 2914A, located in PEL 85 in Namibia’s Orange Basin. Azule Energy joins the existing contractor group of Rhino Resources (85%), Namibia’s NOC NAMCOR (10%), and indigenous company Korres Investments (5%). Signed in May 2024, the deal includes plans to drill two high-impact exploration wells, with the first well set to be spud by the end of 2024.

ADNOC Buys Galp’s Mozambique Assets

State-owned Abu Dhabi National Oil Company (ADNOC) has acquired multinational energy corporation Galp’s 10% interest in the Area 4 concession of Mozambique’s Rovuma basin. Finalized in May 2024, the acquisition gives ADNOC a share in the LNG produced from the concession – which has a capacity exceeding 25 million tons per annum. The Area 4 concession includes the Coral South FLNG facility, the planned Coral North FLNG development and the Rovuma LNG onshore facilities. The investment supports ADNOC’s expansion into lower-carbon LNG to meet its goal to achieve net-zero by 2045.

Renaissance Africa Energy Acquires SPDC

Energy major Shell has sold its entire shareholding in the Shell Petroleum Development Company of Nigeria Limited (SPDC) to the consortium Renaissance Africa Energy. This acquisition, confirmed in January 2024, is subject to approval by Nigerian authorities. The transaction will maintain SPDC’s operational capabilities and Shell will continue supporting SPDC JV facilities supplying feed gas to the Nigeria LNG project. This move aligns with Shell’s strategy to exit onshore oil production in the Niger Delta.

Petrobras Acquires Stakes in Shell’s São Tomé and Príncipe Blocks

Brazilian national oil company Petrobras has acquired stakes in three exploratory blocks in São Tomé and Príncipe from Shell. Petrobras now holds a 25% stake in Block 11 and a 45% stake in Blocks 10 and 13, respectively. Shell remains the operator with a 40% stake in each block. Signed in February 2024, the deal aligns with Petrobras’ strategy to diversify its portfolio and explore new oil frontiers in Africa.

TotalEnergies, Qatar Energy Enter South African License

Energy major TotalEnergies, along with state-owned QatarEnergy, has secured a majority stake in an oil exploration license in the Orange Basin, offshore South Africa. TotalEnergies has acquired a 33% participating interest in Block 3B/4B and will take on the role of operator, while QatarEnergy has obtained a 24% interest. The transaction was initiated in March 2024, with the remaining block operators including energy companies Africa Oil South Africa (17%), Ricocure (19.75%) and Azinam (6.25%).