Chariot signs framework agreement for additional Angola oil exposure

Chariot Limited (LSE:CHAR) has signed a framework agreement with Etu Energias and BW Energy to provide operational and technical support in connection with Etu Energias’ acquisition of additional interests in offshore Angola Blocks 14 and 14K.

Under the arrangement, Chariot will receive economic exposure equivalent to approximately 4,000 barrels of oil per day. The company has indicated a net present value of more than $100 million for this exposure based on an oil price of $60 per barrel.

The transaction increases Chariot’s economic exposure to oil production in Angola and extends its existing partnership with Etu Energias and Shell’s trading arm.

Blocks 14 and 14K are producing offshore oil assets in Angola. Together, the blocks currently produce approximately 42,000 barrels of oil per day and have estimated remaining reserves of 93 million barrels.

The licences extend into the 2030s, according to the information provided.

BW Energy will be involved in the partnership alongside Etu Energias and Chariot. The arrangement also provides exposure to potential future developments associated with the blocks using existing infrastructure.

Chariot said the transaction is consistent with its strategy of increasing its exposure to producing assets and associated revenues, with the company expecting the interests to generate cash flows over the medium term.

Chariot Limited is an Africa-focused energy group operating across upstream oil and gas and renewable power.

Its upstream business has assets in Angola and Morocco and is focused on securing production. The company’s renewable activities include power projects in South Africa and green hydrogen development in Mauritania. Chariot plans to monetise its renewable interests to support further expansion of its upstream operations.