LONDON – Bracewell (UK) LLP represented London-listed Energean plc in connection with its acquisition of Chevron’s interests in two producing blocks, offshore Angola.
Energean, through its subsidiary Energean West Africa Ltd, has signed an agreement with Cabinda Gulf Oil Company Limited, a subsidiary of Chevron Corporation, to acquire its 31 percent operated interest in Block 14 and its 15.5 percent non‑operated interest in Block 14K. The acquisition marks Energean’s strategic entry into Angola, further strengthening its global portfolio and providing access to a world-class hydrocarbon basin.
Block 14 spans nine oilfields with a current gross output of approximately 40,000 bopd (around 12,000 bopd net to Energean’s 31 percent acquired interest). The unitised, cross-border, Block 14K contains the producing Lianzi oil field, with gross output of approximately 2,000 bopd. Beyond existing production, the acquisition offers access to the PKKB development, presenting significant upside potential.
The base consideration is $260 million in cash, subject to customary adjustments that include an upside-sharing mechanism for hydrocarbon sales during the interim period. In addition, contingent payments of up to $25 million per annum, capped at $250 million in aggregate, may become payable up until 2038 in relation to the potential future PKBB development. Completion of the transaction is subject to customary conditions, including regulatory approvals in the Republic of Angola and the waiver of applicable pre-emption rights.
Darren Spalding, co-chair of Bracewell’s oil and gas practice and who led the Bracewell team, commented: “We are delighted to have supported Energean on the signing of this deal in Angola. The deal represents a new country entry for Energean, and its first major investment in West Africa. As Angola cements its position as a leading African destination for upstream investment, Energean’s commitment to strategic growth and its proven track record in deepwater and offshore operations make it well-placed to capitalise on the opportunities the region presents.”
Bracewell lawyers involved in the transaction include:
Partners: Darren Spalding
Senior Associates: Kirsty Delaney and Adam Quigley
Associate: Rachel Strickland
