Angola's Etu Energias eyes new oil deals, urges African banks to fund them
What's the deal? Angolan independent Etu EnergiasDealroom has a profile for this one. Try Dealroom → has agreed to acquire stakes in Block 14 and Block 14K from Azule EnergyDealroom has a profile for this one. Try Dealroom → and Chevron, with Chariot as a partner. The terms were undisclosed. The company is already preparing its next phase of upstream acquisitions, chief financial officer Fernando Hermes said at African Energy Week 2026 in Cape Town.
What's the catch? African financial institutions are barely funding the boom. Local banks have provided less than 10% of the financing for Angola's recent upstream deals, Hermes said.
What's the ask? Hermes called for development finance institutions such as the Africa Finance CorporationDealroom has a profile for this one. Try Dealroom → to help lower borrowing costs for local and regional companies. "We still need to find ways to have finance at a lower cost for local or regional companies like us," he said.
Why now? Angola's M&A market is heating up, and Etu wants cheaper capital in place before the next licensing round. Hermes expects the National Oil, Gas and Biofuels Agency's upcoming round to attract strong interest, building on the collaborative approach of the previous one.
What could go wrong? Cheaper money carries risk. Siji Adesemowo, head of energy corporate finance at South African bank RMBDealroom has a profile for this one. Try Dealroom →, warned that very cheap money tends to attract lower-quality transactions. He said lenders do show appetite across the capital stack once credible partners, a stable fiscal framework and investor upside are in place.
The signal: As Angola's deal flow matures, financing costs look set to fall. Julian Maurice-Williams, CFO of Chariot, said successful deals draw new entrants and capital, and the resulting competition will push costs down — a dynamic that could reshape who owns the continent's oil assets.
Read more: aecweek.com
Image credit: bseegov
