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Chevron is shedding another piece of its global upstream portfolio. The American oil major has agreed to sell its interests in two offshore Angolan oil blocks to Energean for a base price of $260 million in a deal announced March 12.
The divestiture covers Chevron's 31% operated interest in Block 14 and its 15.5% non-operated stake in Block 14K, both located in Angola's deepwater offshore basin. Together, the two assets produce roughly 42,000 barrels of oil per day. The sale is part of Chevron's broader effort to streamline its upstream holdings and redirect capital toward higher-growth opportunities, though the company will retain a presence in Angola through interests in other blocks and the Angola LNG project.
Anglo-US law firm Hogan Lovells is advising Chevron on the transaction. The London team is led by partner Sarah Shaw, alongside partners Ben Sulaiman and Philip Harle, senior associates Catherine Lah and Adela Komorowska, and associates Nancy Ricardo, Wilson Pek and Emily Louise.
Block 14 contains nine oilfields processed through the Benguela, Belize, Lobito and Tomboco and Tombua-Landana and Landana North production hubs. The block carries 28 million barrels of net proven and probable reserves attributable to the interest being acquired, along with spare processing capacity that Energean says can support future drilling and development. Partners in Block 14 include Etu Energias, Azule Energy and Sonangol P&P.
Block 14K holds the Lianzi oil field, a unitized multi-jurisdictional asset tied back to Block 14 infrastructure. It produces around 2,000 barrels a day gross. Trident Energy operates Block 14K, with Total E&P Congo, Etu Energias, Azule Energy, Sonangol P&P and SNPC also holding interests.
The $260 million cash figure is a base price. The final sum at closing will incorporate working capital adjustments and a profit-sharing clause tied to asset performance. Under the terms of the deal, Energean has also agreed to contingent payments of up to $25 million annually through 2038, capped at $250 million in total, linked to oil prices and production thresholds related to the potential PKBB development.
The transaction carries an effective date of Jan. 1, 2026, and is expected to close before year-end, pending regulatory approval from Angola's National Agency for Petroleum, Gas and Biofuels and the waiver of pre-emption rights.
In 2025, adjusted earnings before interest, taxes, depreciation, amortization and exploration from the assets, net to Energean's working interest, came in at $119 million. Energean plans to fund the acquisition through a non-recourse debt facility structured against the acquired assets, supplemented by existing group liquidity, and said the deal will be immediately accretive to cash flow.
The purchase marks Energean's first move into West Africa. Mathios Rigas, founder and chief executive officer of Energean, called it "a landmark moment" for the company, saying the deal reflects a strategic focus on disciplined growth and geographic diversification. Founded in 2007 and dual-listed on the London Stock Exchange and the Tel Aviv Stock Exchange, Energean has built its portfolio across the greater Mediterranean and the UK's North Sea.
