Canadian oil exploration company Sintana Energy has announced the acquisition of UK-based Challenger Energy in an all-share transaction valuing the British firm at $61mn. The deal aims to strengthen Sintana’s position along the southern Atlantic margin, a strategic zone linking southern Africa to South America.
Promising blocks in Namibia and Uruguay
The combined portfolio includes the OFF-1 and OFF-3 blocks offshore Uruguay, as well as the PEL 79 and PEL 83 offshore exploration licences in Namibia. Both areas have gained renewed international interest following major discoveries by TotalEnergies, Shell and Galp in recent years, confirming the region’s petroleum potential.
In Namibia, the blocks operated by Sintana and Challenger are located near previously identified offshore oil finds. Through this acquisition, Sintana plans to mobilise financial and technical resources to accelerate seismic surveys and drilling campaigns scheduled through 2026.
Independent firms consolidate to compete with majors
In a sector traditionally dominated by large oil companies, this merger reflects the effort of smaller firms to remain competitive. The current environment, marked by high exploration costs and increasing technological demands, is pushing smaller operators to pool their capacities.
The deal comes amid growing investor interest in African oil markets, including Côte d’Ivoire and Senegal, where companies such as Petrobras and BW Energy have recently expanded their footprint.
Regulatory approvals expected by end-2025
Completion of the transaction is expected by the end of 2025, subject to regulatory and shareholder approvals. Neither Sintana nor Challenger currently holds producing assets, leaving operational uncertainties over the eventual conversion of the portfolio into commercially viable volumes.
“This merger marks a key step in our expansion and consolidation strategy in Africa,” a Sintana representative said, without specifying a production timeline.
