Chevron has agreed to sell its offshore oil stakes in Angola to Energean for $260 million, giving the Mediterranean-focused energy producer its first foothold in West Africa as it expands beyond its core gas operations.

The deal covers Chevron’s 31% operated stake in Block 14 and a 15.5% non-operated interest in Block 14K. The transaction is backdated to January 1, 2026, and remains subject to regulatory approvals and other customary conditions.

Together, the assets produce approximately 42,000 barrels of oil per day. Once the acquisition is finalised, Energean’s share of that production will be around 13,000 barrels per day.

In addition to the base price, the agreement includes potential contingent payments linked to future oil developments and global crude prices. These payments could reach up to $25 million annually, capped at $250 million, and may extend through 2038.

Energean plans to finance the acquisition using debt tied to the acquired assets as well as its existing liquidity. The company has been actively pursuing new investment and acquisition opportunities as it expands beyond its established markets in the Mediterranean.

The move also aligns with Energean’s broader strategy to diversify its production base. Its flagship gas fields in Israel have faced temporary shutdowns over the past year due to geopolitical tensions, prompting the company to seek more stable production sources elsewhere.

Angola remains one of Africa’s largest oil producers and continues to attract foreign investment as the government works to sustain output from mature offshore fields while encouraging new exploration.

For Chevron, the sale is part of a wider effort to streamline its global portfolio. The U.S. oil major said it will continue to operate other assets in Angola, including interests in Blocks 0, 33, 49 and 50, as well as the Angola LNG project and the South N’Dola oilfield.

Block 14 has faced operational challenges in the past. In 2024, a fire on a production platform in the block resulted in three fatalities, underscoring the safety risks associated with offshore operations in the region.

Despite such incidents, the block remains a significant producing asset in Angola’s offshore oil sector, offering Energean a strategic entry point as it builds a new energy hub in West Africa.