Afentra plc, the upstream operator focused on opportunities in Africa, has been launched with a clear mandate to look at opportunities to invest in the energy transition in Africa. Spearheaded by CEO Paul McDade, the foundations have been laid with the development of a comprehensive corporate strategy and appointment of team members including a new CFO that can deliver against this new vision.
The name Afentra, which stands for African Energy Transition, reflects the Company’s strategic imperative of capitalising on opportunities resulting from the accelerating energy transition on the African continent. Afentra has been established to support sustainable change in the African energy industry, in a sector that needs further responsible, well managed, independent operators.
The global energy transition is being driven by political, corporate and civil society in pursuit of the goals set by the international community to decarbonise. The energy industry is seeing Oil and Gas majors recalibrate their strategies and business models to a lower carbon energy portfolio. A significant divestment cycle of legacy assets is expected in Africa similar to the industry transition that occurred in both the Gulf of Mexico and the North Sea generating a compelling market dynamic for agile and innovative consolidators.
As the global energy transition progresses, hydrocarbons will continue to play a critical role in future energy and economic systems. Responsible supplies of oil and gas will be a necessary part of a transition to a lower carbon world. Natural resources are central to the economic and social development of the continent and will require continued access to capital. To access capital markets, Afentra will need to address stakeholders’ ESG focus as a central part of its business risk and opportunity management.
Afentra has embedded ESG into its operating model with the imperative to reduce energy-related emissions, whilst also protecting the positive socio-economic impact of oil and gas revenues.
Afentra’s growth strategy is to achieve scale through implementation of a buy and build model – positioning itself as a trusted partner of divesting IOCs and host governments to build a portfolio of assets that progress the growth strategy. The Company is specifically targeting producing assets and discovered resources in Africa where the team has existing knowledge, experience and network. The Company is focusing on operated positions but will also consider non-operated positions alongside credible operators with shared standards. Target assets must be value accretive, adding potential for robust cash flow and proven reserves.
Once acquired, the Company intends to leverage its deep operating capabilities to increase efficiencies, enhance production, reduce operating costs and improve environmental performance. Afentra’s overall aim is to support the energy transition in Africa by responsibly realising the full potential of assets for the benefit of all stakeholders.
Afentra has assembled a strong team with an established network with IOCs and Host Governments, a proven track record for business delivery and high operating standards. The team is actively screening a pipeline of opportunities, consistent with the strategy and aims to announce a transaction within the next 12 months.
The Company also announces the appointment of Anastasia Deulina as Chief Financial Officer and to the Board of Directors of the Company. Anastasia joins from Tullow Oil where she was Group Head of Strategy, Planning and M&A. She brings over 20 years’ experience working in the energy sector within global investment banks, private equity and corporates, and adds extensive expertise in strategy development, M&A, deal origination, structuring and execution, and business transformation and growth.
Anastasia’s appointment completes the assembly of an experienced executive management team with diverse and complementary skillsets capable of delivering Afentra’s growth strategy.
Commenting on the launch of Afentra, CEO Paul McDade said:
“We have formed Afentra to capitalise on a compelling market dynamic and see a clear role for our Company to support a responsible and sustainable energy transition in Africa that serves the purposes of all stakeholders. We have embedded an ESG agenda into the core fabric of the business and see those objectives as absolutely central to our growth strategy. The impact of a poorly managed energy transition on the socio-economic wellbeing of many countries on the continent is not currently part of the global climate change narrative. Through our approach and operating model, we hope to highlight the importance of credible operators like Afentra in ensuring a smooth transition that continues to support the socio-economic development of host countries.
We have ambitious growth plans and look forward to engaging with the various counterparties on the target opportunities. Afentra has a strong balance sheet, supportive shareholder base, experienced and motivated leadership team, and a strategy that is tailored to the present and future outlook for this industry. We believe that the value accretive buy and build model coupled with our unwavering commitment to ESG fits with the progressive agenda that investors increasingly expect in terms of ensuring solid shareholder returns alongside a positive broader stakeholder impact. We look forward to updating the market on our progress.”