Chevron sells stake in Angola's Block 14, 14K to Energean for $260 million

March 12 (Reuters) - Energean ENOG.L on Thursday said it would acquire Chevron's CVX.N interests in two offshore Angola oil blocks for a base consideration of $260 million, as the Mediterranean-focused gas producer follows through on its plan to build out a hub in West Africa.

Energean has been increasing investment to lift production amid geopolitical disruptions and is evaluating new M&A opportunities in the region as it seeks to expand its portfolio.

Here are some key details about the deal:

• Energean to buy Chevron's 31% operated interest in Block 14 and 15.5% non-operated interest in Block 14K, backdated to January 1 and pending approvals

• Last year, a fire at a production platform in Block 14 killed three people

• The deal is expected to be immediately cash flow accretive

• In addition to the base consideration, Energean will make contingent payments of up to $25 million per annum, capped at $250 million

• Contingent payments will be payable through 2038, linked to future developments and oil prices

• Block 14 assets produce around 42,000 bpd of oil in total, equivalent to 13,000 bpd net to the acquired interest

• Energean will fund the deal through debt financing on the acquired assets and available group liquidity

• Energean's flagship Israeli gas fields have had to shut down twice over the past year due to conflicts in the Middle East

• Chevron said it remains committed to other assets in Angola including Blocks 0, 33, 49 and 50, Angola LNG, the South N'Dola oilfield