London-based oil and gas company Energean has agreed to acquire two offshore Angolan oil blocks from energy giant Chevron in a landmark $260 million transaction, marking the company’s first major foray into West Africa and a significant strategic pivot away from its established Eastern Mediterranean portfolio.
The deal covers a 31% operated stake in Block 14 and a 15.5% non-operated interest in Block 14K offshore Angola. The two blocks together produce roughly 42,000 barrels per day (bpd) in gross output — approximately 13,000 bpd net to Energean’s acquired interest. Block 14 alone accounts for around 40,000 bpd from nine producing oil fields, while Block 14K contributes an additional 2,000 bpd through the Lianzi oil field, a unitised cross-border asset tied back to Block 14 infrastructure.
Energean Chief Executive Mathios Rigas described the acquisition as “a landmark moment” for the company, saying it aligns with the firm’s focus on disciplined growth and geographic diversification. The transaction is effective from January 1, 2026, and is expected to close by year-end, subject to regulatory approvals from Angola’s National Agency for Petroleum, Gas and Biofuels (ANPG) and other customary consents.
The deal will be funded through a combination of non-recourse debt financing secured against the acquired assets and existing group liquidity. Energean says the transaction will be immediately cash flow accretive, with its adjusted EBITDAX from the assets estimated at $119 million. In addition to the base price, contingent payments of up to $25 million annually — capped at $250 million in total — may apply through 2038, tied to oil prices and progress on the planned PKBB redevelopment program covering the Punta Gorda, Kuito, Banzala and Benguela-Belize fields.
Block 14, historically a high-output deepwater asset that once produced nearly 300,000 bpd at peak, offers what Energean describes as multiple near-term production optimisation opportunities and mid-term drilling targets leveraging existing infrastructure. Abandonment obligations for Block 14 are fully covered through pre-existing escrow provisions.
For Energean, the deal also provides a launchpad for wider regional expansion. The company is already exploring gas opportunities in Mauritania and Senegal. Chevron, meanwhile, has clarified it remains committed to Angola, retaining interests in Blocks 0, 33, 49 and 50, the Angola LNG project, and the South N’Dola oilfield.
Sources: offshore-energy.biz | energycapitalpower.com