New Oil Company for Angola


A new multinational joint venture aims to become Angola’s largest oil producer.

International oil companies Eni and BP have formed a new joint venture in Angola, which is expected to become the country’s largest oil producer.

The Italian and United Kingdom-headquartered companies will each own 50% of Azule Energy, which owns stakes in 16 Angolan exploration licences and is involved in the country’s liquefied natural gas (LNG) joint venture.

The deal was announced on 11 March, following a memorandum of understanding signed in May 2021, and is due to be completed in the second half of the year, subject to government approval and closing conditions.

The joint venture partners predict that the new company will produce the equivalent of more than 200,000 barrels per day. As part of the deal, Eni has transferred its existing stake in Solenova, a local solar joint venture with Angolan state oil company Sonangol.

BP chief executive Bernard Looney said in a statement: “Azule Energy draws on our combined strengths and skills and, more importantly, is anchored in our shared values and beliefs about what the future of energy should be. Ultimately Azule Energy will be able to drive efficiencies and realize new opportunities across an expanded and truly exciting portfolio.”

Eni chief executive Claudio Descalzi added: “The creation of Azule Energy is a further step in advancing our strategic approach to accelerate growth through focused lean and financially independent companies.”

“Azule Energy will leverage synergies and high-quality assets, boosting activities in Angola and will have one of the largest portfolios of production, development and exploration opportunities in Sub-Saharan Africa,” he added.

Eni was advised on the deal by mergers and acquisitions, tax, employment and energy lawyers from the London headquarters of Pinsent Masons. Lead partner Akshai Fofaria said in a statement: “This joint venture will transform Angola’s energy landscape,” describing Azule as “an innovative new venture that will have one of the largest portfolios in Sub-Saharan Africa”.

Read Article From Source: ICLG