Table of Contents
BW Energy is betting that Angola’s deepwater fields can become its next cash engine in Africa, as the company’s primary owner and board chairman, Andreas Sohmen-Pao, pushes to widen the producer’s footprint beyond Gabon.
The Oslo-listed company said it has agreed, in a consortium with French oil group Maurel & Prom, to buy stakes in two offshore licenses - Block 14 and Block 14K - from Azule Energy, a joint venture of BP and Eni.
BW Energy will take a 10% non-operating interest in Block 14 and a 5% interest in Block 14K, with Chevron remaining operator. The licenses run to 2038 and include nine producing fields tied to established infrastructure, BW Energy said.
At current rates, the two blocks produce about 40,000 barrels of oil per day gross, or roughly 4,000 barrels per day net to BW Energy. The company put net producing reserves at 9.3 million barrels and said it sees room to lift recoverable volumes over time, including through incremental projects such as the PKBB development.
The deal carries a base cash price of $97.5 million net to BW Energy. A $6 million deposit is payable up front, with the balance due at completion. The purchase price will be adjusted for cash flows between the effective date of Jan. 1, 2025, and closing.
BW Energy said there are also contingent payments of up to $57.5 million net, linked to factors such as Brent crude prices above specified thresholds from 2026 to 2028 and production-related milestones.
Chief Executive Carl K. Arnet said the Angola entry adds producing barrels, diversifies the company’s reserve base and positions BW Energy alongside major operators in a basin with long-running projects and a clear regulatory framework. The company expects the transaction to close by mid-2026, subject to approvals and customary conditions.
For Sohmen-Pao, the move fits a strategy built on disciplined acquisitions that can generate cash quickly and fund growth. He is chairman of BW Energy and the controlling force behind BW Group, a shipping-and-energy investor that holds a dominant stake in the company through entities associated with him.
Angola, Africa’s second-largest oil producer, has become a magnet for mid-sized players as majors recycle mature positions and independents hunt for low-risk barrels they can produce efficiently. BW Energy is signaling it wants a seat at that table — and, in time, a larger role.
