Sirius, Somoil seal Sonangol sale

Sirius, Somoil seal Sonangol sale

Sirius Petroleum and Somoil have officially signed a sale and purchase agreement for stakes in three blocks offshore Angola for $335.5 million.

Sirius and locally owned Somoil will have 8.28% in Block 18, 10% in Block 31 and 25% in Block 27 under the deal with Sonangol P&P. The first two blocks are producing around 160,000 barrels per day gross, providing about 15,500 bpd net to the two companies.

Bobo Kuti, CEO of Sirius, said the acquisitions were “in line with our strategy to build a high-quality portfolio of African producing and development assets. We are excited by the long-term growth upside that these assets present and the scale that they bring to the Sirius platform.”

Kuti went on to say the company had a “very strong working partnership” with Somoil. The two companies will work together on the completion of the acquisition and to build “a significant presence together in Angola”.

The two companies expect to sign up new debt facilities to finance the deal, although plans are not yet settled.

The companies will pay $170mn for the 10% stake in Block 31, which BP Angola operates. It has four fields producing 80,000 bpd via the PSVM facility.

Gross 2P/2C reserves are 275mn barrels,