BW Energy has taken a significant step in its West Africa growth strategy, signing an agreement alongside consortium partner Maurel & Prom to acquire non-operated stakes offshore Angola from Azule Energy, giving BW Energy a 10% interest in Block 14 and 5% in Block 14K.
The two blocks comprise mature producing assets operated by Chevron, with Block 14 currently yielding about 40,000 barrels of oil per day gross, of which BW Energy’s share will amount to roughly 4,000 barrels per day. The acreage also includes multiple opportunities for incremental recovery and near-field development, consistent with BW Energy’s strategy of unlocking stranded or under-developed resources.
CEO Carl K. Arnet said the move strengthens the company’s long-term presence in West Africa and positions BW Energy for additional operated opportunities in Angola. “The entry to Angola is a key step in BW Energy’s West Africa growth strategy and provides further diversification of our resource base,” Arnet noted. “Angola is a mature hydrocarbon basin with strong political support for the energy sector, and we see attractive opportunities to apply our model of developing proven reserves using existing infrastructure.”
The transaction includes 97.5 million dollars in base consideration net to BW Energy, with six million dollars due immediately and the remainder payable at closing, subject to customary adjustments. Additional contingent payments of up to 57.5 million dollars may be triggered if Brent prices exceed preset thresholds between 2026-2028 or if production milestones tied to the PKBB development are reached.
Block 14 contains nine producing fields, while Block 14K is a subsea tieback to the main block. Current net reserves to BW Energy are estimated at 9.3 million barrels, with Chevron operating the assets through a license term extending to 2038. Abandonment liabilities are fully covered by existing provisions.
Azule Energy currently holds a 20% interest in Block 14 and a 10% stake in Block 14K. The 310 million dollar transaction is expected to close in mid-2026, pending customary adjustments and regulatory and partner approvals. Joseph Murphy, CEO of Azule Energy, stated: “This transaction is aligned with Azule Energy’s strategy to concentrate our efforts on our core assets in Angola. As the company completes this divestment, it will continue to pursue opportunities that will meet the country’s energy needs and drive a sustainable future.”
Completion remains subject to regulatory approvals in Angola, with closing expected by mid-2026. BW Energy highlighted Maurel & Prom’s participation as a strong partnership for future regional growth.
Sources: worldoil.com, energycapitalpower.com, energy-pedia.com