bp and Eni confirmed that Azule Energy, the new 50/50 independent joint venture combining the two companies’ Angolan businesses, has been officially established
Azule Energy is now Angola’s largest independent equity producer of oil and gas, holding 2bn 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 five years. It 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 sq km in Angola’s most prolific basins, allowing it to leverage proximity with existing infrastructure.
Azule Energy’s leadership team draws on experience and expertise from both parent companies. It will report to a six-person board comprising three bp and three Eni representatives, reflecting the ownership share of the company.
Eni and bp share common goals for Azule Energy in achieving environmental and sustainability ambitions. They anticipate Azule Energy’s new independent, integrated operating model will unlock significant cost savings, mainly from operational synergies in logistics and technology.
The JV incorporation takes place after the pending conditions were met, among them having secured a third-party financing of US$2.5bn in the form of pre-export financing, and after receiving regulatory approvals.
Bernard Looney, bp’s chief executive, said, “Combining our Angolan businesses and drawing on both bp’s and Eni’s expertise, it will continue to safely and efficiently develop Angola’s resilient hydrocarbon resources and pursue new opportunities in oil and gas and other energies.”
Claudio Descalzi, chief executive officer, Eni, said, "A new, strong entity is born, which combines our experience, skills and technologies with those of our partner bp, putting them at the service of the development of Angolan energy resources, with a priority commitment to environmental protection and the growth of local economy."
Adriano Mongini, chief executive officer, Azule Energy, said, “I feel honoured to be the first chief executive officer of the company. With finance discipline and focus on HSE, Azule Energy will maximise the value of the assets for the benefit of Angola and the shareholders.”
Health, safety and environmental performance, project delivery and production efficiency will be priority areas for the new venture.
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.