According to a statement from Eni, the two oil multinationals have entered into a non-binding memorandum of understanding "to move forward with detailed discussions aimed at combining their 'upstream' portfolios in Angola, including both oil and gas and LNG [liquefied natural gas] interests in the country."
Combining efforts into a new joint venture company "will bring significant opportunities for Eni and BP's joint capacity to drive future developments and operations in Angola," they stress.
The aim is to generate "significant synergies", create a more efficient operation and increase investments and growth in the basin to develop the potential of the 'upstream' sector (oil exploration and production).
The new company is to be self-financed and supported by Eni and BP, who "will agree a business plan that allows them to capture future opportunities for exploration, development and possibly portfolio growth, both in Angola and regionally.
The intention has already been transmitted to the Angolan government and any final transaction is still subject to government, regulatory and relevant partner approvals, the document adds.
Consultants have also already been appointed who will support the oil companies in raising funds for the new joint venture.
Eni is present in Angola as operator of the five blocks 15/06, exploration blocks Cabinda Norte, Cabinda Centro, 1/14 and soon the 28, and is also operator of the New Gas Consortium (NGC). It also has stakes in non-operated blocks: 0 (Cabinda), 3/05, 3 / 05A, 14, 14 K / A-IMI, 15 and the Angola LNG liquefaction plant.
BP is the operator of Blocks 18 and 31, and has stakes in Blocks 15, 17, 20, briefly in Block 29 and in the NGC and Angola LNG initiatives.
