bp PLC and Eni SPA have signed an agreement to form a new 50-50 independent company, Azule Energy, through the combination of the two companies’ Angolan businesses. The agreement follows the memorandum of understanding between the companies agreed in May 2021 (OGJ Online, May 19, 2021).
Independently managed Azule Energy is expected to be Angola’s largest producer, holding stakes in 16 licenses, oil and gas production of over 200,000 boe/d net, resources of 2 billion boe net, and participating interest in the Angola LNG joint venture. Azule Energy also will take over Eni’s stake in Solenova, a solar company jointly held with Sonangol.
New projects to be started by the company over the next few years include the Agogo and PAJ oil projects in Blocks 15/06 and 31, respectively. It also will develop the New Gas Consortium (NGC), the first non-associated gas project in the country (OGJ Online, Jan. 16, 2020).
Creation of Azule is subject to customary governmental and other approvals. The deal is expected to close in this year’s second half. Once set up, Azule Energy will be equity accounted by bp and Eni. Hydrocarbon production and GHG emissions will continue to be reported on an equity share basis.
Currently Eni is operator of Blocks 15/06 Cabinda North, Cabinda Centro, 1/14, 28, and soon 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 is operator of Blocks 18 and 31 offshore Angola, and has non-operated stakes in Blocks 15, 17, 20, and 29. bp also has non-operated interests in NGC and Angola LNG.
