Italian oil and gas company, Eni, and British Petroleum (BP) have announced that they have entered into a non-binding memorandum of understanding (MoU) to progress detailed discussions on combining their upstream portfolios in Southern African nation, Angola, including all their oil, gas and LNG interests in the country.
The purpose of the MoU is to generate significant synergies, create more efficient operations and increase investment and growth in the basin. Both companies believe that combining their efforts in a new joint venture company will bring significant opportunities to jointly boost future developments and operations in the country.
The new venture, which would be supported by Eni and BP and will benefit from the competencies and personnel of each, would reflect both companies’ commitment to the development of the upstream sector potential of Angola. The company will be self-funded.
More Details of the JV
- A business plan for the company would be agreed by Eni and bp to allow it to capture future opportunities in exploration, development and possibly portfolio growth, both in Angola and regionally.
- HSE performance, project delivery and production efficiency will be priority areas for the management.
- The companies’ social investment commitments in the country will continue to be honoured.
- Eni and bp have informed the Angolan Government of their intention.
- The final transaction will be subject to relevant Governmental, regulatory, and partner approvals.
- The companies have appointed advisors to support them in raising finance for the new joint venture.
ENI in Angola
Eni is the operator of Block 15/06, and exploration blocks Cabinda North, Cabinda Centro, 1/14 and soon 28 and is also the operator of 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.
bp in Angola
bp is the operator of 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.
