Energy giants Eni and BP have agreed to combine their upstream portfolios in Angola, including all their oil, gas and LNG interests in the country.
The two firms said in a joint statement on Friday that they have signed an agreement to form a new 50/50 independent company, through the combination of the two companies’ Angolan businesses.
This deal follows the memorandum of understanding between the companies agreed in May 2021.
Angola’s largest producer
Azule Energy would be a new international energy company with more than 200,000 barrels equivalent a day (boe/d) of net oil and gas production and 2 billion barrels equivalent of net resources, the statement said.
According to the duo, the firm would become Angola’s largest producer, holding stakes in 16 licenses, as well as participating in the Angola LNG joint venture.
Azule Energy will also take over Eni’s stake in Solenova, a solar company jointly held with Sonangol.
Moreover, Azule Energy would have a “strong pipeline” of new projects starting up over the next few years, including the new Agogo and PAJ oil projects in Blocks 15/06 and 31 respectively.
It will also develop the New Gas Consortium (NGC), the first non-associated gas project in the country, which will support the “energy needs of Angola’s growing economy, its decarbonization path and strengthen its role as a global LNG player.”
Second-largest shareholder in Angola LNG
Chevron-operated Angola LNG said last year it had loaded and shipped its 500th cargo since the launch of the 5.2 mtpa Soyo plant in 2013.
Chevron has a 36.4 percent stake while Sonangol owns 22.8 percent in Angola LNG.
BP, Eni and TotalEnergies hold a 13.6 percent stake, each.
Following the new deal, Azule Energy would become the second-largest shareholder in the LNG plant with a 27.2 percent share.
The creation of Azule Energy remains subject to all customary governmental and other approvals.
Eni and BP aim to complete the transaction in the second half of 2022.