Privately owned Etu Energias SA signed a sale and purchase agreement (SPA) with Chevron Corp. for the acquisition of Chevron subsidiary Cabinda Gulf Oil Co. Ltd.'s (CABGOC) participating interest in deepwater Blocks 14 and 14K offshore Cabinda, Angola.

Upon completion of the transaction, subject to applicable regulatory approvals and other conditions set out in the agreement, Etu will acquire CABGOC's 31% operated interest in Block 14 and 15.5% operated interest in Block 14K.

In tandem with the Etu-CABGOC deal, BW Energy Ltd. signed a framework agreement with Etu and Chariot Ltd. to provide technical and operational support for the blocks.

BW Energy's deal with Etu and Chariot follows Chariot's separate announcements earlier in the year that it planned to and subsequently did provide partial funding to an Etu subsidiary in connection with Etu’s acquisition of a working interest in Blocks 14 and 14K. 

The Blocks 14 and 14K area produces from nine fields, developed through two hub installations and supported by active waterflooding and a well intervention program. Current gross production is about 42,000 bo/d of which 95% is from Block 14 and 5% from Block 14K. Producing reserves are 93 million bbl, of which about 13,000 bo/d and 29 million bbl are attributable to the interests Etu is acquiring.

Block 14 lies in 200-1,600 m of water. The block has produced more than 900 million bbl of high-quality, Brent-linked crude since first oil in 1999, with production having peaked at about 200,000 bo/d.

Block 14K is a cross-border unitized development between Angola and the Republic of Congo and is tied back to Block 14 infrastructure.

The assets hold identified upsides from the development of nearby reservoirs, suitable for tie-back to existing infrastructure, production optimization, and operating cost reductions, according to BW Energy.