PAC Capital Limited, the investment banking arm of Lagos-based PanAfrican Capital Holdings, has completed a $443mn acquisition facility for an Angolan oil company Etu Energias (formerly Somoil).

The deal involves the acquisition of Portuguese energy corporation Galp Energia’s working interests in Block 32, Block 14, and Block 14K offshore Angola, Business Day (Nigeria) reported on July 12.

“This transaction provides the opportunity for another African company to make inroads into these strategic assets, previously dominated by International Oil Companies (IOCs), thereby giving a significant advantage for majority stakes,” commented PAC Capital’s managing director Humphrey Oriakhi.

According to Bolarinwa Sanni, senior director at PAC Capital, the acquisition transaction was finalised last month on the margins of the 31st Afreximbank Annual Meetings (AAA) and the 3rd AfriCaribbean Trade and Investment Forum (ACTIF) in Nassau, Bahamas.

The deal includes Galp’s 5% non-operating stake in Block 32, 9% non-operating stake in Block 14, and 4.5% non-operating stake in Block 14K.

“This deal is not just a significant milestone for Etu Energias but also a transformative step towards strengthening local ownership and control of key energy assets in Angola. We are proud to have facilitated this landmark transaction,” Sanni said, stressing the strategic importance of this acquisition.

The transaction represents Etu Energias’ entry into deepwater oil production, which, according to the company, was made possible by the close collaboration between the different parties. The deal was supported by the government of Angola, in particular the National Oil, Gas and Biofuels Agency (ANPG) and the Ministry of Mineral Resources, Petroleum and Gas.

“The conclusion of this transaction demonstrates the resilience of our company and represents a huge step in our strategy to build a profitable and diversified portfolio,” said Etu Energias chairman and CEO Edson Dos Santos.

Dos Santos expressed his appreciation for the support and role of PAC Capital in the finalisation of the acquisition deal.

“PAC Capital’s expertise and dedication were instrumental in securing this acquisition. Their skilful strategic fund arrangement ensured the successful closure of this complex transaction, positioning us to become a leading player in Angola’s oil and gas sector,” he added.

Etu Energias’ acquisition significantly enhances Angola’s energy security by empowering local companies to own strategic petroleum assets, thereby strengthening the country’s energy sector, writes Business Day.

This transaction follows the recent completion of a $3.3bn pre-export facility in Nigeria by PAC Capital. The facility, designed to support Nigeria’s crude exports, is part of broader efforts to enhance Nigeria’s energy sector and economic stability.