Israeli E&P company Energean PLC (LSE: ENOG, TASE: אנאג) has entered into an agreement to acquire Chevron's 31 per cent operated interest in Block 14 and its 15.5 per cent non-operated interest in Block 14K, both offshore Angola. The company described the deal as a platform for long-term growth in the region and the initial move in its strategy to expand operations into West Africa.
The acquired interests currently contribute net production of around 13,000 barrels of oil per day from the combined blocks, which together produce approximately 42,000 barrels per day gross. Energean expects the transaction to be immediately cash flow accretive, with the assets delivering adjusted EBITDAX of $119 million in 2025.
The base cash consideration is $260 million, effective from 1 January 2026. The final amount payable at closing will reflect customary working capital adjustments and the economic performance of the assets in the period between the effective date and completion, including an upside-sharing arrangement with Chevron if oil prices rise above certain thresholds during that time. Energean plans to fund the purchase through non-recourse debt financing secured on the acquired assets combined with available group liquidity.
Contingent payments of up to $25 million per annum – capped at a total of $250 million through to 2038 – may also be payable in relation to the potential future PKBB development, depending on realised oil prices and production exceeding defined thresholds.
Closing is anticipated by the end of 2026, subject to approval from Angola's National Agency for Petroleum, Gas and Biofuels (ANPG), other customary governmental and third-party consents, and the waiver of applicable pre-emption rights. Energean highlighted Angola's supportive fiscal regime and regulatory environment, together with the benefit of acquiring a highly skilled and experienced operating team.
Block 14, where Energean will assume operatorship with the 31 per cent stake, produces from nine oil fields at roughly 40,000 barrels per day gross (about 12,000 barrels per day net to the interest being acquired). Net 2P reserves for the stake stand at 28 million barrels. The current partners in Block 14 are Chevron (31 per cent; operator), Etu Energias (29 per cent), Azule Energy (20 per cent), and Sonangol P&P (20 per cent).
Block 14K contains the Lianzi field, a unitised cross-border development tied back to Block 14 facilities. Gross production from Lianzi is around 2,000 barrels per day, equivalent to approximately 1,000 barrels per day net to the 15.5 per cent interest Energean is acquiring. Block 14K (Lianzi / A-IMI) are Trident Energy (15.75 per cent; operator), Total E&P Congo (26.75 per cent), Chevron (15.5 per cent), Etu Energias (14.5 per cent), Azule Energy (10 per cent), Sonangol P&P (10 per cent), and SNPC (7.5 per cent).
Posts
