A consortium comprising BW Energy and Maurel & Prom has agreed to acquire Azule Energy’s 20% non-operated stake in Block 14 and 10% in Block 14K offshore Angola. 

This deal provides BW Energy with a 10% interest in Block 14 and 5% in Block 14K, and entry into Angola, aligning with its long-term regional plans. 

Block 14 is a deep-water asset comprising nine producing deep-water fields, while Block 14K is connected to the main block. 

The licence for these assets, operated by US-based oil and gas company Chevron, remains in effect up to 2038. 

Currently, the gross production from these blocks stands at 40,000 barrels of oil per day (bopd), with BW Energy’s net share estimated at 4,000bopd. 

BW Energy’s net share of producing reserves is estimated at 9.3 million barrels, with additional potential to increase recoverable quantities identified. 

Existing provisions are said to cover the costs associated with abandonment and decommissioning. 

This is a joint transaction, in which Maurel & Prom and BW Energy will obtain the same level of ownership in both licences. 

It is expected to be completed by mid-2026, subject to regulatory approvals and other standard closing conditions. 

BW Energy will pay a base amount of $97.5m (Be97.5m) for its share of the acquisition, as well as an initial deposit of $6m at signing, with the remainder to be paid upon closing. 

The total payment will be adjusted to account for cash flows from 1 January 2025 until the completion date. 

Additional contingent payments of up to $57.5m may be required if certain conditions are met, such as Brent crude prices greater than the period from 2026 to 2028 or achieving specific production milestones related to development activities in blocks 14 and 14K. 

BW Energy CEO Carl Arnet said: “The entry to Angola is a key step in BW Energy’s West Africa growth strategy and provides further diversification of our resource base. 

“Firstly, we see clear upsides beyond the current production in Block 14, and, more importantly, we build a position for potential future operated development opportunities in the country. 

“Angola is a mature hydrocarbon basin with an active M&A [mergers and acquisitions] market and strong political support for the energy sector. 

“We see attractive opportunities for BW Energy to apply our strategy of developing proven reserves and stranded assets through the reuse of existing energy infrastructure to unlock significant value over time.” 

In October this year, the company announced that the Kharas-1 appraisal well, drilled within the Kudu licence offshore Namibia, has reached its total planned depth, intersecting multiple geological formations.