M&A Deals in Africa’s Oil & Gas Industry in 2023

In 2023, Africa’s Mergers & Acquisitions (M&A) landscape featured a healthy mix of oil and gas deals, with M&A activity resulting in a total transaction value of $3.2 billion in deals either announced or closed. According to the African Energy Chamber’s 2024 Outlook report, transactions depicted a trend in which indigenous operators are buying into producing portfolios, while global energy majors are giving greater focus to dedicated frontier regions, such as Namibia.

Maurel & Prom Acquires Assala Energy: $730 Million

In August 2023, oil and gas exploration company Maurel & Prom announced the 100% acquisition of Gabon-focused oil and gas company, Assala Energy, from global investment firm The Carlyle Group. At a cost of $730 million, the transaction comprises all of the company’s Gabon-focused assets and subsidiaries. The deal is closed.

Galp Energia Divests Angolan Assets: $655 Million

In February 2023, Portuguese multinational energy corporation Galp Energia signed an agreement with Angolan privately-held energy company Etu Energias (formerly Somoil) for the sale of its upstream assets in Angola. The deal was valued at $655 million and is expected to be closed by the end of 2023.

AFC Acquires Aker Energy: $605 Million

Africa Finance Corporation (AFC) Equity Investment – an affiliate of multilateral finance institution AFC – announced in April 2023 a deal to acquire exploration and production company Aker Energy. Valued at $605 million, the deal will see AFC Equity Investment become Aker Energy’s sole stakeholder. Following completion of the transaction, the company will have a 50% stake in the Deepwater Tano Cape Three Points block, offshore Ghana – comprising the Pecan field and discoveries.

Petronas Divests Chadian Assets: $371 Million

In May 2023, Malaysian energy group Petronas announced the completion of the sale of its Chadian assets to state-owned Société des Hydrocarbures du Tchad at a cost of $371 million. The transaction includes stakes in seven producing oil fields in the Doba Basin, as well as a 29.77% interest in the Chad-Cameroon oil pipeline company – operator of the 1,081km Chad-Cameroon Pipeline.

Octavia Energy Acquires Sound Energy’s Moroccan Assets: $141 Million

Following the initiation of a farm-out process in August 2022, in June 2023, UK-based energy firm Sound Energy entered into a 45-day exclusivity with Calvalley, a subsidiary of international oil and gas company Octavia Energy, for a 40% working interest in the Tendara Exploitation Concession and the Grand Tendara Exploration Permit in Morocco. The deal is valued at $141 million.

Eni Sells Select Onshore Nigerian Assets: $86 Million

In September 2023, Italian-based energy major Eni announced the signing of an agreement with African integrated energy firm Oando for the sale of Nigerian Agip Oil Company (NAOC) – Eni’s wholly-owned onshore Nigerian subsidiary. NAOC’s assets include interests in four onshore Blocks – OML 60, 61, 62 and 63 – and two onshore exploration leases – OPL 282 and 135. 

Afentra Acquires Additional Angolan Assets: $48 Million

Independent energy company Afentra signed a sale and purchase agreement with independent equity producer Azule Energy in July 2023 to acquire a 12% interest in Block 3/05 and a 16% interest in Block 3/05A. Estimated at $48 million, the deal is ongoing.

This was followed by an announcement in November 2023 that the government approved Afentra’s acquisition of two oil blocks from state-owned Sonangol. Set to be concluded by the end of this year, the deal comprises a 14% non-operating interest in Block 3/05 and a 40% non-operating interest in Block 23, offshore Angola.

Apex Acquires Six Egyptian Assets: $45 Million

In January 2023, independent oil and gas exploration and production company Apex Energy acquired six concessions in the Western Desert of Egypt from International Egyptian Oil Company – an Eni subsidiary. Closed in June 2023, the concessions include all of the company’s interests in the Ras Qattara, West El Razzak, East Kanayis and West Abu Gharadig concessions, as well as a 25% interest in the East Obaiyed and South West Meleiha concessions.

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