Angolan energy company Etu Energias has agreed to acquire additional stakes in two offshore oil blocks from Cabinda Gulf Oil Company (CABGOC), Chevron’s Angolan subsidiary, in a deal valued at US $260M that will significantly strengthen its position in Angola’s deepwater sector.
Under the sale and purchase agreement, Etu Energias will acquire a 31% working interest in Block 14 and a 15.5% stake in Block 14K offshore Cabinda. The transaction has an economic effective date of January 1, 2026, and includes potential contingent payments of up to $25 million annually, capped at US $250M through 2038, linked to future development of the PKBB project and dependent on oil price and production performance.
The acquisition follows Etu Energias’ decision to exercise its pre-emption rights after Chevron agreed to sell the assets to Energean. Upon completion, Etu’s interest in Block 14 will increase from 29% to 60%, while its stake in Block 14K will rise from 14.5% to 30%, making it the largest stakeholder in Block 14. The company also plans to assume operatorship of Block 14, subject to regulatory approval.
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Framework agreement
Funding for the acquisition will be provided through a debt facility from Shell Western Supply and Trading, while a framework agreement involving BW Energy and Chariot supports the broader transaction structure. The deal also marks BW Energy’s planned entry into Angola’s offshore sector as part of its West African growth strategy.
Block 14 is one of Angola’s longest-producing deepwater assets, having delivered more than 900 million barrels of Brent-linked crude since production began in 1999. The block currently produces from nine offshore fields connected to the Benguela-Belize-Lobito-Tomboco and Tombua-Landana hub facilities. Production peaked at approximately 200,000 barrels per day and currently contributes the majority of output from the combined Block 14 and Block 14K assets.
The assets currently produce around 42,000 barrels of oil per day, with approximately 13,000 barrels per day attributable to the interests being acquired. The transaction also includes access to an estimated 29 million barrels of reserves linked to the acquired stakes.
Etu Energias said the acquisition represents a major step in its long-term growth strategy, enabling the company to expand its deepwater operating capabilities while unlocking additional value from mature offshore assets. The company believes opportunities remain for production growth through nearby field developments, operational improvements and cost efficiencies. The transaction is expected to close in early 2027, subject to approval from Angola’s National Oil, Gas and Biofuels Agency (ANPG), other regulatory authorities and customary third-party consents.
