Etu Energias to Acquire Interests in Two Angolan Deepwater Blocks for $260 Million

en.Wedoany.com Reported - On August 28, Etu Energias signed an asset purchase agreement with Cabinda Gulf Oil Company Limited, a subsidiary of Chevron, to acquire a 31% participating interest in Block 14 and a 15.5% participating interest in Block 14K offshore Angola for a base cash consideration of $260 million. The transaction's economic effective date is retroactive to January 1, 2026, with completion planned for early 2027, subject to approval from Angola's National Agency for Petroleum, Gas and Biofuels (ANPG) and other necessary permits and third-party consents.

Etu Energias currently holds 29% and 14.5% interests in Block 14 and Block 14K, respectively. Upon completion of the transaction, its equity stakes in the two blocks will increase to 60% and 30%, respectively. Existing partners in Block 14 also include Azule Energy and Sonangol E&P, each holding 20%; Block 14K is currently operated by Trident Energy, with other participants including Total E&P Congo, Azule Energy, Sonangol E&P, and Congo's national oil company SNPC.

In addition to the $260 million base consideration, the agreement includes contingent payment arrangements tied to the future development of the PKBB oilfield. Related payments are capped at $25 million per year, with an aggregate cap of $250 million, extending through 2038, with actual payment amounts to be determined based on oil prices and project production volumes. The acquisition will be financed through a credit facility provided by Shell Western Supply and Trading Ltd., with BW Energy and Chariot Limited additionally signing framework agreements with Etu Energias to provide technical and operational support for the relevant assets.

Block 14 is located offshore Cabinda, Angola, in water depths ranging from approximately 200 to 1,600 meters. Since first oil production in 1999, cumulative crude output has exceeded 900 million barrels. The development scope includes nine oilfields, supported by production facilities such as Benguela, Belize, Lobito, Tomboco, and Tômbua-Lândana. Block 14K contains the Lianzi oilfield, a cross-border unitized development project between Angola and the Republic of the Congo, which is connected to Block 14 infrastructure.

Block 14 and Block 14K currently produce a combined approximately 42,000 barrels of crude oil per day, with about 95% coming from Block 14; the two blocks hold approximately 93 million barrels of proved reserves. The interests to be acquired under this transaction correspond to approximately 13,000 barrels per day of production and approximately 29 million barrels of proved reserves. Etu Energias plans to assume operatorship of Block 14 upon completion of the transaction and receipt of relevant approvals.