Mediterranean energy company Energean is set to enter the West African oil sector after agreeing to acquire offshore oil assets in Angola from Chevron in a deal valued at $260 million.
The agreement includes Chevron’s 31% operated interest in Block 14 and a 15.5% non-operated stake in Block 14K. Although the transaction will be effective from January 1, 2026, it is still subject to regulatory approvals and other standard closing conditions.
The two assets currently produce about 42,000 barrels of oil per day. After the acquisition is completed, Energean’s net share of production is expected to be around 13,000 barrels per day.
In addition to the initial purchase price, the agreement provides for possible extra payments tied to future project developments and global oil prices. These contingent payments could amount to as much as $25 million annually, with a total cap of $250 million extending through 2038.
Energean intends to fund the acquisition through a mix of asset-backed debt and available liquidity. The company has been actively pursuing new investment opportunities as it expands beyond its traditional operations in the Mediterranean region.
The acquisition also reflects Energean’s effort to diversify its production sources. Its main gas projects in Israel have experienced temporary shutdowns over the past year due to geopolitical tensions in the Middle East, prompting the company to seek more stable production assets elsewhere.
Angola remains one of Africa’s leading oil producers and continues to attract foreign investors as authorities work to sustain production from mature offshore fields while encouraging further exploration.
For Chevron, the sale forms part of a broader strategy to optimise its global portfolio. The U.S. oil giant will continue to operate other Angolan assets, including stakes in Blocks 0, 33, 49 and 50, as well as the Angola LNG project and the South N’Dola oilfield.
Block 14 has previously faced operational issues. In 2024, a fire on one of its production platforms resulted in three deaths, highlighting the safety challenges associated with offshore oil operations.
Despite this incident, the block remains an important producing asset within Angola’s offshore sector, providing Energean with a strategic entry point as it seeks to establish a stronger presence in West Africa’s energy market.