GLNG: BP, Eni complete formation of Azule Energy JV in Angola

BP (UK) and Eni (Italy) confirmed on August 2 that they had completed the process of establishing Azule Energy, a new joint venture that will combine both companies’ upstream, LNG and solar energy assets in Angola.

In a joint statement, BP and Eni noted that Azule Energy’s portfolio would include equity stakes in 16 Angolan oil and gas blocks, including six exploration blocks, that are believed to contain around 2bn barrels of oil equivalent (boe) in net resources. The joint venture’s share of production from these sites is on track to rise to about 250,000 barrels of oil equivalent per day (boepd) within the next five years, they said. This will make it the country’s largest independent equity producer of oil and gas, they added.

The partners went on to say that Azule Energy would assume BP and Eni’s shares in Angola LNG, the operator of an onshore gas liquefaction plant with a production capacity of 5.2mn tonnes per year (tpy). The joint venture will also take control of Eni’s stake in Solenova, a solar energy concern established with Angola’s national oil company (NOC) Sonangol, as well as the Italian company’s investments in the Luanda oil refinery, they reported.

The incorporation of the joint venture was completed after the two majors met all conditions for the transaction, the statement noted. This included securing the relevant regulatory approvals and $2.5bn in third-party pre-export financing, it explained.