BW Energy to buy stakes in blocks 14 and 14K offshore Angola

Core Viewpoint - A consortium led by BW Energy and Maurel & Prom is acquiring a 20% non-operated stake in Block 14 and a 10% stake in Block 14K offshore Angola from Azule Energy, marking a strategic entry into the Angolan market for BW Energy [1][5]. Group 1: Acquisition Details - The acquisition grants BW Energy a 10% interest in Block 14 and a 5% interest in Block 14K, aligning with its long-term regional plans [1]. - The total payment for the acquisition is set at $97.5 million, with an initial deposit of $6 million and the remainder due at closing, expected by mid-2026 [3]. - Additional contingent payments of up to $57.5 million may be required based on Brent crude prices and production milestones from 2026 to 2028 [4]. Group 2: Production and Reserves - The gross production from Blocks 14 and 14K is currently 40,000 barrels of oil per day (bopd), with BW Energy's net share estimated at 4,000 bopd [2]. - BW Energy's net share of producing reserves is estimated at 9.3 million barrels, with potential for increased recoverable quantities identified [2]. Group 3: Strategic Importance - The entry into Angola is a key step in BW Energy's West Africa growth strategy, providing diversification of its resource base and positioning for future development opportunities [5]. - Angola is characterized as a mature hydrocarbon basin with an active mergers and acquisitions market and strong political support for the energy sector [5]. - BW Energy aims to develop proven reserves and stranded assets by reusing existing energy infrastructure to unlock significant value over time [6].