Energean has signed a $260m (£194.19m) deal to acquire Chevron’s 31% operated stake in Block 14 and 15.5% non-operated stake in Block 14K, both situated offshore Angola.
Block 14 currently produces approximately 42,000 barrels of oil per day (bopd), with Energean’s share amounting to around 13,000bopd from its soon-to-be-acquired stake.
Production from Block 14 comes from nine oilfields processed via the Benguela, Belize, Lobito and Tomboco and Tombua-Landana and Landana North hubs, with these facilities offering spare processing capacity along with gas processing and water injection systems. Net proven and probable reserves from Energean’s prospective stake stand at 28 million barrels.
According to Energean, the block provides opportunities for further production optimisation and mid-term drilling, with existing infrastructure able to accommodate future developments such as PKBB.
Escrow provisions already fully fund abandonment obligations for Block 14.
Current partners in Block 14 include Chevron as operator (31%), Etu Energias (29%), Azule Energy (20%) and Sonangol P&P (20%).
Block 14K comprises the unitised Lianzi field, which is tied back to Block 14 infrastructure. It produces around 2,000 barrels per day (bpd) gross, of which around 1,000bpd would be net to Energean’s planned acquisition.
Partners in Block 14K (Lianzi) are Trident Energy as operator (15.75%), Total E&P Congo (26.75%), Chevron (15.5%), Etu Energias (14.5%), Azule Energy (10%), Sonangol P&P (10%) and SNPC (7.5%).
In 2025, adjusted earnings before interest, taxes, depreciation, amortisation and exploration for the assets, net to Energean’s working interest, stood at $119m. The company expects the deal to contribute immediately to cash flow.
Under the terms of the deal, Energean has also agreed to make contingent payments of up to $25m per year, which could be made through to 2038. These will be based on realised oil prices and production thresholds relating to the potential PKBB development.
The contingent payments are capped at $250m in total.
Energean CEO Mathios Rigas said: “The acquisition of a producing oil portfolio in Angola’s world-class hydrocarbon basin, highlighted by major recent discoveries, marks a landmark moment for Energean. It represents our first major investment in West Africa and is in line with our strategic focus on disciplined growth and geographic diversification.
“The high-quality and cash-generating Block 14 assets have stable oil production and contain long-term growth optionality, including material resource upside from the PKBB development.”
