BW Energy has, through a consortium with Maurel & Prom, signed an agreement to acquire a combined 20 percent non-operated interest in Block 14 and a 10 percent non-operated interest in Block 14K offshore Angola from Azule Energy. As part of the transaction, BW Energy will hold a net 10 percent interest in Block 14 and a 5 percent interest in Block 14K, establishing a strategic foothold in Angola that aligns with the company’s long-term regional growth strategy.
Carl K. Arnet, Chief Executive Officer of BW Energy, said the entry into Angola represents a significant step in the company’s West Africa expansion. He noted that the assets offer clear upside potential beyond current production in Block 14, while also positioning BW Energy for future operated development opportunities in the country. Angola was described as a mature hydrocarbon basin with an active mergers and acquisitions market and strong political support for the energy sector, providing attractive opportunities to apply BW Energy’s strategy of developing proven reserves and stranded assets through the reuse of existing infrastructure.
Block 14 is a mature deepwater asset comprising nine producing fields, while Block 14K is a tie-back to the main block. The assets are operated by Chevron, with licences running until 2038. Gross production is approximately 40 thousand barrels of oil per day, with around 4 thousand barrels of oil per day net to BW Energy. Current producing reserves are estimated at 9.3 million barrels net to BW Energy, with several identified opportunities to increase recoverable volumes. Abandonment and decommissioning costs are covered by existing provisions.
The acquisitions form part of a joint transaction with Maurel & Prom, which will acquire equal ownership interests to BW Energy in both licences. BW Energy has highlighted Maurel & Prom as a strong and experienced partner in the transaction. Completion remains subject to regulatory approvals and customary closing conditions, with closing expected by mid-2026.
The transaction includes a base cash consideration of USD 97.5 million net to BW Energy. A deposit of USD 6 million is payable immediately, with the remaining balance due at completion and subject to customary adjustments reflecting cash flows between the effective date of 1 January 2025 and the closing date.
In addition, contingent payments of up to USD 57.5 million net to BW Energy may become payable upon the occurrence of certain events, including Brent oil prices exceeding specified thresholds during the 2026 to 2028 period and the achievement of defined production milestones associated with the PKBB development.
For more information visit www.bwenergy.no
