Energean on Thursday said it would acquire Chevron's interests in two offshore Angola oil blocks for a base consideration of $260 million, as the Mediterranean-focused gas producer follows through on its plan to build out a hub in West Africa.
Energean has been increasing investment to lift production amid geopolitical disruptions and is evaluating new MA opportunities in the region as it seeks to expand its portfolio.
The deal involves Energean buying Chevron's 31 per cent operated interest in Block 14 and 15.5 per cent non-operated interest in Block 14K, backdated to January 1 and pending approvals.
Last year, a fire at a production platform in Block 14 killed three people. The deal is expected to be immediately cash flow accretive.
In addition to the base consideration, Energean will make contingent payments of up to $25 million per annum, capped at $250 million.
Contingent payments will be payable through 2038, linked to future developments and oil prices. Block 14 assets produce around 42,000 bpd of oil in total, equivalent to 13,000 bpd net to the acquired interest.
Energean will fund the deal through debt financing on the acquired assets and available group liquidity.
Energean's flagship Israeli gas fields have had to shut down twice over the past year due to conflicts in the Middle East. Chevron said it remains committed to other assets in Angola including Blocks 0, 33, 49 and 50, Angola LNG, the South N'Dola oilfield.
(Reporting by Raechel Thankam Job in Bengaluru and Shadia Nasralla in London; Editing by Janane Venkatraman and Louise Heavens)
