(Finance) – bp and Eni confirmed today that they have signed an agreement for the establishment of Azule Energy, a new 50/50 joint venture that will combine the two companies’ Angolan businesses. The agreement follows the memorandum of understanding between the companies signed in May 2021.
Azule Energy it will be a new international energy company, independently managed, with over 200,000 barrels equivalent (boed) of net oil and gas production and 2 billion barrels equivalent of net resources. It will be the largest energy company in Angola by production, with holdings in 16 licenses, as well as holdings in Angola LNG JV. Azule Energy is also committed to take over Eni’s stake in Solenovaa company active in the solar sector jointly owned by Sonangol.
Azule Energy already has a robust set of new projects that will be launched in the coming years, including i new Agogo and PAJ projectsrespectively in blocks 15/06 and 31. 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 its role as a global player in LNG.
bp and Eni share common objectives for Azule Energy in pursuing environmental and sustainability ambitions.
bp and Eni believe that the combination of their commitment with a long-term perspective will allow greater efficiency in operations and will favor the increase in investments,increased employment and growth of Angola. Azule Energy will help develop the potential of the country’s upstream sector, while at the same time positioning itself to capture the new opportunities of the energy transition, thanks to the growing role of gas and renewables in its portfolio.
“Angola – he declared Bernard Looney, chief executive of bp – has long been important to BP’s operations and this innovative new venture underlines and enables our continued engagement in the country. Eni is a valuable partner to work with in the region. Azule Energy leverages the combination of our strengths and skills and, more importantly, is anchored in our shared values for what we believe should be the future of energy. Azule Energy will be able to increase efficiency and realize new opportunities through an expanded and truly exciting portfolio. “
“The creation of Azule Energy – he declared Claudio Descalzi, CEO of Eni – is a further step in our strategic approach to accelerate growth through lean and financially independent companies. By combining two world-class companies into a single stronger team, Azule Energy will leverage synergies and high-quality assets, boosting operations in Angola, and have one of the largest portfolios of manufacturing, development and exploration opportunities in sub-Saharan Africa. bp shares our values and our approach to just transition and we are very pleased to be a partner in this initiative. “
Health, safety, environmental performance, project delivery and production efficiency will be priority areas for the new business. The joint venture will maintain access to world-class technologies and best practices through technical support in targeted areas by Eni and bp. Azule Energy will maintain bp and Eni’s social investment commitments in Angola.
Since announcing their intention to set up the JV in May 2021, bp and Eni have worked closely with the Angolan government; the creation of Azule Energy will be subject to all relevant approvals, with the aim of meeting all the terms and conditions of the agreement by the second half of 2022. Once established, Azule Energy will be accounted for at equity in bp and in Eni’s financial statements. The production of hydrocarbons and greenhouse gas emissions will be reported in proportion to the shareholding.
Eni is currently the operator of Blocks 15/06, Cabinda Nord, Cabinda Centro, 1/14, 28 and shortly of the New Gas Consortium (NGC). In addition, Eni has investments in non-operated blocks 0 (Cabinda), 3/05, 3 / 05A, 14, 14 K / A-IMI, 15 and in Angola LNG.
bp is operator of blocks 18 and 31 offshore Angola and has non-operated stakes in blocks 15, 17 and soon 18/15 and 29. bp also has non-operated stakes in NGC and Angola LNG.