AfrOil: Galp agrees to sell Angolan upstream assets to Somoil for $830mn

Portugal’s Galp has arranged to sell its upstream assets in Angola to Sociedade Petrolífera Angolana (Somoil), a local company, for a total consideration of approximately $830mn after capital gains taxes.

Galp announced the deal on February 13, saying it had already signed an agreement with Somoil. The deal provides for the Angolan company to pay about $655mn for the assets plus about $175mn in contingent payments, with the exact size of the latter to be dependent on Brent crude prices.

The Portuguese company said it aimed to finalise the transaction in the second half of 2023 and would make the contingent payments in 2024 and 2025. Bank of America is slated to act as financial advisor for the transaction, it said.

The deal will add the following assets to Somoil’s upstream portfolio: a 9% stake in Block 14, a 4.5% stake in Block 14K and a 5% stake in Block 31.