Energean makes strategic entry into offshore Angola

12th Mar 2026 07:19

(Sharecast News) - Exploration and production firm Energean has agreed to acquire Chevron's 31% operated stake in Block 14 and 15.5% non‑operated stake in Block 14K offshore Angola, marking its first move into West Africa and what it described as a platform for long‑term regional growth.

Energean said on Thursday that the Block 14 assets produced around 42,000 barrels per day in total, equivalent to 13,000 barrels per day net to the interest being acquired. Adjusted underlying earnings for 2025 were $119m, and Energean said the deal would be immediately cash‑flow accretive.

The FTSE 250-listed firm will make a base consideration of $260m in cash, with an effective date of 1 January 2026, while contingent payments of up to $25m per year, capped at $250m in aggregate, may become payable up until 2038 in relation to the potential future PKBB development, contingent on both realised oil prices and production being over certain thresholds.

Energean said the transaction was expected to complete by the end of 2026, subject to government and regulatory approvals and the waiver of pre‑emption rights, and also highlighted Angola's "supportive fiscal regime and regulatory environment" and said the acquisition would bring a "highly skilled and experienced" operating team into the business.

Chief executive Mathios Rigas said: "The acquisition of a producing oil portfolio in Angola's world‑class hydrocarbon basin, highlighted by major recent discoveries, marks a landmark moment for Energean. It represents our first major investment in West Africa and is in line with our strategic focus on disciplined growth and geographic diversification.

"Our proven track record in deepwater operations and offshore project delivery positions us well to support ANPG's strategic objective for Angola to increase reserves and combat production decline, while creating long-term value for Angola and our shareholders."

As of 1010 GMT, Energean shares ticked up 0.059% to 855p.

Reporting by Iain Gilbert at Sharecast.com