Etu Energias, a privately owned Angolan energy company, has taken steps to increase its stakes in two offshore blocks from Cabinda Gulf Oil Company (CABGOC), a subsidiary of U.S.-headquartered energy giant Chevron, through a deal that will make it the largest interest holder in one of Angola’s longest-producing deepwater assets and could see it take over operatorship of one of these blocks
Etu Energias has signed a sale and purchase agreement (SPA) with Chevron’s Angolan subsidiary to acquire a 31% working interest (WI) in Block 14 and a 15.5% WI in Block 14K offshore Cabinda for a base consideration of $260 million in cash, with an economic effective date of January 1, 2026. In addition, contingent payments of up to $25 million per annum, capped at $250 million in aggregate, may become payable up until 2038 in relation to the potential future PKBB development, contingent on both realized oil prices and production being over certain thresholds.
The agreement follows the firm’s exercise of pre-emption rights as an existing partner in both licenses after Chevron inked a deal to sell the stakes in the two blocks to Energean. With a current 29% WI in Block 14 and a 14.5% WI in Block 14K, Etu Energias emphasizes that it will become the largest interest holder in one of Angola’s longest-established deepwater producing assets and intends to assume the role of the operator on Block 14, subject to regulatory approval.
The acquisition, which is supported by a framework agreement with BW Energy and Chariot, will be funded by a debt facility provided by Shell Western Supply and Trading. The transaction is said to mark a strategic entry into a new core area for BW Energy, aligned with the company’s West Africa growth strategy.
Carl K. Arnet, CEO of BW Energy, said: “The framework agreement is an important step towards establishing BW Energy in Angola, one of West Africa’s premier deepwater provinces. Once completed, this is expected to deliver production and cash flow with identified upsides. Block 14 is a high-quality asset with a long production history and several proven undeveloped discoveries, which BW Energy sees strong potential to put into production.
“Angola offers a deep inventory of proven discoveries that can benefit from focused development and repurposed infrastructure. We look forward to working with Etu and Chariot on what we see as a strong and complementary partnership, and to further develop our position in Angola over time.”
The transaction is expected to complete in early 2027, subject to customary conditions including approval by the Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG), other regulatory entities and the receipt of required third-party consents.
The current gross production is approximately 42,000 barrels of oil per day (bopd), of which approximately 13,000 bopd is net to the interests being acquired; gross producing reserves of 93 million barrels (bbls), of which approximately 29 million bbls are attributable to the interests being acquired.
The company underlines that there is material identified upside from the development of nearby reservoirs suitable for tie-back to existing infrastructure, from production optimization, and potential operating cost efficiencies associated with the transition of operatorship.