BP and Eni entered a non-binding memorandum of understanding (MoU) to combine upstream portfolios in Angola, including all oil, gas, and LNG interests in the country.
Combining efforts in a new joint venture company could bring opportunities for synergies, efficient operations, and increased investment and growth in the basin, the companies said in a joint statement May 19.
The new company would be supported by Eni and BP and would be expected to be self-funded. A business plan would be agreed by BP and Eni to capture future opportunities in exploration, development, and possibly portfolio growth, both in Angola and regionally.
Advisors to support fundraising for the JV have been appointed and the Angolan government has been informed. Any final transaction will be subject to relevant governmental, regulatory, and partner approvals.
Eni is operator of Block 15/06 and exploration Blocks Cabinda North, Cabinda Centro, 1/14 and soon 28 and is also operator of the New Gas Consortium (NGC) (OGJ Online, Jan. 16, 2020). Eni holds a stake in the 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, 20, and soon 29 (OGJ Online, Jan. 16, 2020). BP also has non-operated interests in the NGC and Angola LNG.