Energean has confirmed the signing of an agreement to finalize the purchase of offshore blocks in Angola, through the acquisition of an operating 31% stake in Block 14 and a non-operated 15.5% stake in Block 14K. Both assets are located in deepwater off the coast of Angola. This strategic transaction represents its first concrete step toward expansion in West Africa, a region with high energy potential.
With this purchase, the company gains access to assets currently producing approximately 42,000 gross barrels per day, equivalent to approximately 13,000 net barrels per day for the company. The company estimates adjusted EBITDAX of $119 million in 2025 from these blocks, which will enable immediate cash flow generation.
Offshore Block Purchase and Financial Details
The incorporation of these assets responds to Energean’s diversification strategy, focused on strengthening its oil and gas portfolio beyond the Eastern Mediterranean. The infrastructure already installed in Block 14 enables low-risk additional drilling opportunities and future resource enhancement through potential PKBB development.
Additionally, the transaction includes a clear timeline: the effective date has been set for January 1, 2026, and closing is subject to governmental approvals by ANPG and other regulatory entities, with completion expected toward the end of the same year.
Transaction Financial Details
The base consideration established is $260 million, to which contingent payments of up to $25 million annually through 2038 could be added if specific production and price conditions are met. Energean plans to finance the transaction through a combination of non-recourse debt on the acquired assets and available group cash resources.
The company’s CEO, Mathios Rigas, emphasized that the transaction is aligned with Energean’s disciplined growth objectives and its experience in offshore operations. He also highlighted the intention to cooperate with local authorities and build upon the operational and environmental legacy left by Chevron in the region.
Commitment to Production Stability and Key Partnerships
Block 14 comprises nine oil fields interconnected through already consolidated processing hubs. In addition to its current capacity, there is expansion potential with new drilling such as PKBB, subject to a final investment decision. For its part, Block 14K contains the Lianzi field, connected to Block 14 infrastructure and with estimated production of 2,000 gross barrels per day.
The transaction positions the company in a privileged position to support Angola’s goals in terms of reserve replacement and production maintenance, while also contributing to its own long-term growth.
Source and internal photo: Energean
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