Italian explorer ENI has announced the completion of the incorporated joint venture of bp and ENI.assets and operations in Angola.
Azule Energy, as it is called “is now Angola’s largest independent equity producer of oil and gas, holding 2Billion barrels equivalent of net resources and growing to about 250,000 barrels equivalent a day (boe/d) of equity oil and gas production over the next 5 years”.
The new company holds stakes in 16 licences (of which six are exploration blocks) and a participation in Angola LNG JV. Azule Energy will also take over ENI’s share in Solenova, a solar company jointly held with Sonangol, and the collaboration in the Luanda Refinery.
Azule Energy boasts a strong pipeline of new projects that are scheduled to come on stream over the next few years, growing organically from exploration discoveries. 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. The JV also holds significant exploration acreage in excess of 30,000 sqkm in Angola’s most prolific basins, allowing it to leverage proximity with existing infrastructures.
Azule Energy’s leadership team draws on experience and expertise from both parent companies. The leadership team will report to a six-person board comprising three bp and three Eni representatives, reflecting the ownership share of the company. All bp Angola and ENI Angola staff have joined Azule Energy.
The JV incorporation takes place after the pending conditions were met, among them having secured a third-party financing of $2.5Billion in the form of Pre-Export Financing, and after receiving regulatory approvals.
After announcing the intent to form the joint venture in May 2021, bp and ENI worked closely with the Angolan government, and Azule Energy’s formation was subject to all customary governmental and other approvals.