Energean to Buy Chevron’s Angola Block 14 Interests for $260 Million to Expand West Africa Presence
Mediterranean gas producer Energean has agreed to acquire Chevron’s interests in two offshore oil blocks in Angola for a base price of $260 million, as the company moves to strengthen its presence in West Africa.
Energean has recently increased investment in efforts to boost production following geopolitical disruptions that affected some of its existing assets.
The company is also reviewing additional merger and acquisition opportunities across the region as part of a strategy to diversify and expand its upstream portfolio.
Under the agreement, Energean will acquire Chevron’s 31% operated stake in Block 14 and a 15.5% non-operated interest in Block 14K. The transaction will be effective from January 1, subject to regulatory approvals.
Operations in Block 14 have faced challenges in recent years. A fire at a production platform in the block last year resulted in the deaths of three workers, highlighting the operational risks associated with offshore oil production.
Energean expects the acquisition to generate immediate positive cash flow once the transaction is completed.
In addition to the base purchase price, the company may make contingent payments of up to $25 million per year, depending on future project developments and oil price performance. These payments could continue through 2038, with total potential contingent payments capped at $250 million.
The Block 14 assets currently produce around 42,000 barrels of oil per day, with approximately 13,000 barrels per day attributable to the interests being acquired.
Energean plans to finance the acquisition through debt secured against the acquired assets, alongside existing group liquidity.
The company has been seeking to diversify its production geographically after its main gas fields in Israel experienced two shutdowns over the past year due to regional conflict.
Chevron said it will continue to maintain a significant presence in Angola through other holdings, including Blocks 0, 33, 49, and 50, as well as the Angola LNG Project and the South N’Dola Oilfield.
