BW Energy Makes Strategic Angola Entry with Chevron-Operated Block Deal

Core Viewpoint - BW Energy has made a significant move into Angola's offshore oil sector by entering a joint agreement with Maurel & Prom to acquire minority stakes in two deepwater blocks from Azule Energy, enhancing its position in one of Africa's key oil-producing regions [1][2]. Group 1: Acquisition Details - The consortium will acquire a total of 20% interest in Block 14 and 10% in Block 14K, with BW Energy holding a net stake of 10% in Block 14 and 5% in Block 14K [2]. - The acquisition involves a base consideration of $97.5 million for each company, with an upfront deposit of $6 million per party and potential contingent payments of up to $57.5 million based on Brent crude prices and production milestones [5]. Group 2: Production and Reserves - Block 14, operated by Chevron, has a gross output of approximately 40,000 barrels per day, with BW Energy's share amounting to around 4,000 barrels per day [3]. - BW Energy's net producing reserves are estimated at 9.3 million barrels, with potential for further recovery through additional drilling and development [4]. Group 3: Strategic Importance - The entry into Angola is a crucial step in BW Energy's growth strategy in West Africa, with expectations of developing stranded assets using existing infrastructure [3]. - The licenses for the acquired blocks are valid until 2038, and decommissioning obligations have already been provisioned [4].