Eni and BP are considering combining their upstream portfolios in Angola in the pursuit of increased investment and growth.
The two companies have informed the Angolan government of their plans. A deal would be subject to approval from various parties, including the government, regulator and partners.
BP and Eni have signed a non-binding memorandum of understanding (MoU) on the plan. This would see all of their oil, gas and LNG interests combined.
Eni and BP have appointed advisors to raise finance for the new joint venture, they said.
The statement said that creating a new joint venture “would bring significant opportunities for them to jointly boost future developments and operations in Angola”.
Such a unit would “generate significant synergies, create more efficient operations, and increase investment and growth in the basin”. A new venture would allow both companies to meet their commitments to continue developing Angola’s upstream potential.
They went on to say the management of the new unit would focus on HSE performance, project delivery and production efficiency. It would also honour both companies’ social commitments.
Eni is the operator of Block 15/06. It also has exploration in Cabinda North, Cabinda Centro, Block 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, 3/05, 3/05A, 14, 14 K/A-IMI, 15 and in Angola LNG.
BP is operator of Blocks 18 and 31 offshore Angola. It also has non-operated stakes in Blocks 15, 17, 20, and soon 29. BP also has non-operated interests in the NGC and Angola LNG.
Should the plan go ahead, the new unit would be one of the largest producers in Angola with production of more than 200,000 barrels of oil equivalent per day.
The two companies have previously set out plans to work together in Libya, under an agreement in October 2018. This has made slow progress.