BW Energy has signed a framework agreement with Etu and Chariot Limited to support Etu’s 31% interest in Block 14 and 15.5% interest in Block 14K, two producing deepwater licences offshore Cabinda, Angola. Etu, Angola’s largest privately owned energy company, has signed a Sale and Purchase Agreement (SPA) with Chevron for the acquisition. Etu intends to assume operatorship of Block 14, with BW Energy and Chariot providing technical and operational support. Subject to applicable approvals, consents and contractual requirements.
The transaction marks a strategic entry for BW Energy into a new core area, aligned with the company's West Africa growth strategy.
Highlights:
- BW Energy's support for Etu under the framework agreement gives it economic exposure to future cash flows corresponding to production of approximately 8 kbopd and associated net 2P reserves of approximately 19 mmbbls
- Current gross production from Block 14 and 14K is approximately 42 kbopd and producing reserves are 93 mmbbls, of which approximately 13 kbopd and 29 mmbbls are attributable to the interests Etu is acquiring
- The asset holds material identified upsides from the development of nearby reservoirs, suitable for tie-back to existing infrastructure, production optimisation as well as operating cost reductions
Carl K. Arnet, CEO of BW Energy, said: 'The framework agreement is an important step towards establishing BW Energy in Angola, one of West Africa's premier deepwater provinces. Once completed, this is expected to deliver production and cash flow with identified upsides. Block 14 is a high-quality asset with a long production history and several proven undeveloped discoveries, which BW Energy sees strong potential to put into production. Angola offers a deep inventory of proven discoveries that can benefit from focused development and repurposed infrastructure. We look forward to working with Etu and Chariot on what we see as a strong and complementary partnership, and to further develop our position in Angola over time.'
BW Energy views the relationship with Etu as important for future value creation and welcomes Chariot Limited as a trusted partner with shared ambitions for growth in Angola. The agreement lays the structure for close collaboration on Block 14 and establishes a foundation that can be value-accretive across the wider opportunity set in Angola. Over the last decade, Etu has completed multiple successful transactions in Angola, and BW Energy is pleased to now be part of that growth.
About Block 14 and Block 14K
Block 14 is a producing deepwater licence offshore Cabinda in water depths of 200 to 1,600 metres. The block has produced more than 900 million barrels of high-quality, Brent-linked crude since first oil in 1999, with production having peaked at approximately 200 kbopd. Current gross production is approximately 42 kbopd of which 95% is from Block 14 and 5% from Block 14K. The area produces from nine fields, developed through two hub facilities and supported by active waterflooding and well intervention programmes.
Block 14K is a cross-border unitised development between Angola and the Republic of Congo, tied back to the Block 14 infrastructure.
Further update and detail will be provided closer to deal completion.
Link to Etu’s press release:
https://etuenergias.co.ao/folder/galeria/ficheiro/71_etuEnergias_aquiresChevronBlocks_65mgxejxxd.pdf
Source: BW Energy
