Angola's largest privately owned energy company, Etu Energias, has struck a $260 million deal to buy Chevron's stakes in two producing deepwater blocks offshore Cabinda.
Etu signed a sale and purchase agreement with Chevron's local affiliate, Cabinda Gulf Oil Company, to acquire a 31% working interest in Block 14 and a 15.5% interest in Block 14K. As the company already held 29% and 14.5% respectively, its holdings will rise to 60% and 30% upon completion, World Oil reported on August 28.
Contingent payments of up to $25 million a year, capped at $250 million in aggregate, could be payable until 2038, tied to the future development of the PKBB field, depending on oil prices and production levels. The acquisition came about after Etu exercised its right of first refusal as an existing partner in both licenses, displacing London-listed Energean, which had already agreed to buy the same interests in March.
The deal hands Etu a majority of Block 14 and positions it to assume operatorship, subject to regulatory approval. Block 14K, which holds the cross-border Lianzi field shared with the Republic of Congo, will remain operated by Trident Energy.
The transaction is financed through a debt facility from Shell Western Supply and Trading and supported by a framework agreement with BW Energy and Chariot Limited, who will provide technical and operational support.
