The Italian oil company Eni and the British BP presented on August 1, Azule Energy, a joint company that will be responsible for the oil operations that both have in course in Angola.
At the event, which took place at one of Luanda’s hotels, Azule Energy’s CEO said that the new company inherited over three decades of successful operations from BP and ENI in Angola, combining, amongst other things, an impressive portfolio of sixteen blocks with some 2 billion barrels of reserves.
“A company that currently produces over two hundred thousand barrels of oil equivalent per day, and expects to grow to two hundred and fifty thousand barrels of oil equivalent per day in the next five years,” Adriano Mongini noted, adding that the partnership between the two companies makes Azule the key player in the natural gas sector, as the company is the operator of the New Gas Consortium, and a shareholder in Angola LNG.
“Azule Energy will also take over ENI’s share in Solenova, a renewable Energy Company jointly owned with Sonangol, and will also continue its collaboration in the Luanda refinery,” the CEO announced during his speech at Azule Energy’s launch ceremony.
Azule, he said, is independent of its “parent companies”, financially autonomous and committed to conducting business ethically, with the highest levels of integrity and transparency.
Its primary focus, he noted, is and will be on health, safety, the environment and community impact.
“Azule Energy is proud to have a portfolio of new projects that are scheduled to come on stream in the coming years, growing organically from exploration discoveries. These projects include the development of Agogo and Ndungu through the Agogo and PAJ Integrated Project,” Adriano Mongini clarified.
In addition, he added, these also include the New Gas Consortium, the first non-associated gas project in the country, which will support the growing energy needs of the Angolan economy and strengthen its role as a global exporter of liquefied natural gas.
On March 11, 2022 Bp and Eni signed an agreement to set up a new independent company owned 50/50 by the two firms, Azule Energy, by combining their businesses in Angola.
The main assets included in the transaction are Blocks 18 and 31 in offshore Angola, operated by Bp, which has non-operated stakes in blocks 15, 17, 20 and 29. The British oil company also has non-operated stakes in NGC and Angola LNG.
Also part of the assets are Blocks 15/06, Cabinda Norte, Cabinda Centro, 14/1, 28 operated by Eni and the new gas consortium. Additionally, Eni has stakes in non-operated Blocks 0 (Cabinda), 3/05, 3/05A, 14, 14 K/A-IMI, 15 and Angola LNG.
Bp’s share of Azule Energy’s production is expected to be approximately 100,000 boe/d and ENI’s is expected to be approximately 100,000 boe/d. According to the established partnership, Azule Energy has the obligation to acquire Eni’s stake in Solenova.
The value of Bp’s gross assets that are the subject of this transaction as at 31 December 2021 was approximately USD 6.8 billion and the assets generated a gross profit of approximately $ 1.1 billion.
While the value of Eni’s gross assets that are the subject of this transaction as at 31 December 2021 was approximately $ 7.3 billion and in the year ended 31 December 2021 the assets generated a gross profit of approximately $ 0.5 billion.
08/02/2022
