Eni and BP plan Angola JV

Energy giants Eni and BP are looking to combine their upstream portfolios in Angola, including all their oil, gas and LNG interests in the country.

In that regard, the two firms have entered into a non-binding memorandum of understanding to progress detailed discussions, Italy’s Eni said on Wednesday.

The companies believe that combining their efforts in a new joint venture company would bring “significant opportunities” for them to jointly boost future developments and operations in Angola.

In particular, the JV would generate “significant synergies, create more efficient operations and increase investment and growth in the basin,” the statement said.

The new company would benefit from the competencies and personnel of both firms, and would be self-funded, Eni said.

Moreover, the duo plans to agree a business plan to allow it to capture future opportunities in exploration, development and possibly portfolio growth, both in Angola and regionally.

Eni and BP have informed the Angolan Government of their intention.

Any final transaction will be subject to relevant governmental, regulatory, and partner approvals.

Also, the companies have appointed advisors that will support the companies in raising finance for the new joint venture.

Second-largest shareholder in Angola LNG

Eni is the operator of block 15/06, and exploration blocks Cabinda North, Cabinda Centro, 1/14 and soon 28 and will also soon operate the New Gas Consortium (NGC).

In addition, Eni has a stake in the non-operated blocks 0 (Cabinda), 3/05, 3 / 05A, 14, 14 K / A-IMI, 15, and in Angola LNG.

On the other side, UK-based BP operates Blocks 18 and 31 offshore Angola, and has non-operated stakes in blocks 15, 17, 20, and soon 29. BP also has non-operated interests in the NGC and Angola LNG.

Chevron-operated Angola LNG recently loaded and shipped its 500th cargo since the launch of the 5.2 mtpa Soyo plant in 2013.

Chevron has 36.4% stake while Sonangol owns 22.8% in Angola LNG. BP, Eni and Total hold a 13.6% stake, each.

If the transaction concludes, BP and Eni would become the second-largest shareholder in the LNG plant with a combined 27.2% share.

- Advertisements -

Most Popular

More News Like This

Expro scores Congo LNG contract from Eni

Energy services provider Expro said it had secured a contract worth more than $300 million from Eni's unit in...

Harvest and IGU working on small LNG plant in Alaska

Houston-based Harvest Midstream is joining forces with Alaska's Interior Gas Utility (IGU) to construct a small LNG plant and...

BP says Tortue FPSO on way to project site off Mauritania and Senegal

The floating production, storage and offloading (FPSO) vessel for the BP-operated Greater Tortue Ahmeyim FLNG project has started its...

Wison starts work on Eni’s Congo FLNG

China's Wison (Nantong) Heavy Industry has officially started building a floating LNG producer that Italy's Eni will install in...