Angola based Azule Energy, the independent 50:50 joint venture between BP and Eni, has begun production, taking responsibility for over 15% of the country’s oil exports.
Now Angola’s largest independent equity producer of oil and gas, Azule holds 2 billion barrels equivalent of net resources, growing to about 250,000 barrels equivalent a day (boe/d) of equity oil and gas production over the next 5 years.
The two supermajors announced the creation of the joint venture in March.
Last month Angola revealed that it had exported $11.8 billion worth of oil in Q2.
TotalEnergies accounted for the greatest share of exports from international companies, at 14.15%, while ExxonMobil exported 9.18%.
BP and Eni were at 9.17% and 6.32% respectively. Now that the two firms have merged local units, Azule Energy has overtaken Total.
BP committed its operated Blocks 18 and 31 offshore Angola, and non-operated stakes in blocks 15, 17, 18/15, 29 and NGC, and a participation in Angola LNG JV.
Meanwhile, Eni has transferred, operated Blocks 15/06, Cabinda North, Cabinda Centro, 1/14, 28 and soon NGC. In addition, stakes in non-operated blocks 0 (Cabinda), 3/05, 3/05A, 14, 14 K/A-IMI, 15 and participations in Angola LNG and, prospectively, Solenova JVs.
BP’s chief executive Bernard Looney said: “The formation of Azule Energy is an important step for bp, Eni and Angola.
“Combining our Angolan businesses and drawing on both bp’s and Eni’s expertise, it will continue to safely and efficiently develop Angola’s resilient hydrocarbon resources and pursue new opportunities in oil and gas and other energies.
“Azule Energy continues our commitment to Angola and will create real value for both the companies and the country.”
Under the agreement, BP and Eni will receive a 50% shareholding in Azule Energy.
Hydrocarbon production, GHG emissions and reserves will be reported on an equity share basis.
The new company has a number of plans for the next few years.
These include the Agogo Full Field and PAJ oil projects in Blocks 15/06 and 31 respectively, and 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 and strengthen its role as a global LNG exporter.
Eni and BP say that combining their efforts will create more efficient operations and offer the potential for increased investment, job creation and growth in Angola.
Eni chief executive Claudio Descalzi said: “This is an important milestone for Eni, marking a step forward in Eni’s strategy of enhancing all our best assets.
“A new, strong entity is born, which combines our experience, skills and technologies with those of our partner bp, putting them at the service of the development of Angolan energy resources, with a priority commitment to environmental protection and the growth of local economy.”
Chief executive of Azule Energy Adriano Mongini added: “I feel honoured to be the first CEO of the company. Together with a highly competent and motivated leadership team we are committed to develop the full potential of the company portfolio of development and exploration opportunities.
“With finance discipline and focus on HSE, Azule Energy will maximize the value of the assets for the benefit of Angola and of the shareholders.”
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