General Energy and partner buy stakes in two Angola oil blocks
A joint venture of oil and gas company Genel Energy and White Rose Energy Ventures has agreed to buy 15 percent stakes in two exploratory blocks offshore Angola for $281 million.
The venture will acquire a 15 percent stake in Block 38 in the Kwanza Basin from China Sonangol for $59 million, of which Genel will pay a net sum of $30 million, and a 15 percent interest in the adjacent Block 39 from Norway’s Statoil for $222 million, Genel said on Thursday.
“This transaction provides a rare opportunity to enter into a low risk, multi-billion barrel resource play,” Genel Chief Executive Tony Hayward, former head of oil major BP, said in a statement.
Drilling on Block 39 is expected to commence in the second quarter, followed by exploration on Block 38, Genel said. Statoil is the operator of both blocks.
Genel plans to pay for the transactions, which are subject to government and partner approvals, through existing cash balances, it said.