Eni, BP finalise deal to form independent joint venture Azule Energy, combining all their Angola businesses

Eni and BP have finalised an agreement first announced in May 2021 to form an independent joint venture in Angola that will combine all of the Italian and British energy majors’ businesses in the African country.

The new company, Azule Energy, will be managed independently and have more than 200,000 barrels of oil equivalent per day (boepd) of net oil and gas production, as well as 2bn boe of net resources.

“The creation of Azule Energy is a further step in advancing our strategic approach to accelerate growth through focused lean and financially independent companies,” Eni's CEO Claudio Descalzi said in a statement on Friday (March 11).

“Combining two world-class businesses into one stronger team, 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.”

Eni is currently operator of Blocks 15/06 Cabinda North, Cabinda Centro, 1/14 and 28 and will soon become operator of New Gas Consortium (NGC), an upstream natural gas partnership in Angola. Additionally, it has non-operating stakes in Blocks 0 (Cabinda), 3/05, 3/05A, 14, 14 K/A-IMI and 15, and also in the Angola LNG joint venture.

Meanwhile, BP is operator of Blocks 18 and 31 offshore Angola and has non-operating stakes in Blocks 15, 17, 20 and 29. The UK-based major also has non-operated interests in NGC and Angola LNG.

Azule Energy is slated to become Angola’s largest producer, with stakes in 16 licence areas and the Angola LNG joint venture. It will also take over Eni’s stake in Solenova, a solar energy company that is jointly held with Angolan state oil company Sonangol.

Subject to customary governmental and other approvals, Azule Energy is expected to be launched in the second half of 2022.