BW Energy enters Angolan offshore market with new block acquisitions

BW Energy, in a consortium with Maurel & Prom, signed an agreement to acquire a 10% non-operated interest in Block 14 and 5% in Block 14K offshore Angola from Azule Energy. This strategic move provides a new foothold in a mature hydrocarbon basin. Block 14, operated by Chevron, comprises nine producing deepwater fields with a license running until 2038.

The acquisition includes estimated current producing reserves of 9.3m barrels net to BW Energy, with gross production from Block 14 at approximately 40 kbopd, yielding 4 kbopd net to BW Energy. The transaction carries a base cash consideration of $97.5m net to BW Energy, with $6m payable immediately and the balance at completion, expected by mid-2026.

Contingent payments of up to $57.5m net may also be payable based on Brent prices exceeding certain thresholds between 2026-2028 and the achievement of defined production milestones for the PKBB development. The effective date for cash flow adjustments is January 1, 2025.