The establishment of the joint venture, in which bp and Eni participated at 50:50, was completed. The JV combines the Angolan upstream, LNG and solar activities of the two companies
bp and Eni are pleased to confirm that Azule Energy, the new independent 50/50 joint venture that unites the Angolan businesses of the two companies, has been officially established.
Azule Energy is now Angola's largest independent oil and gas producer: it holds 2 billion barrels equivalent of net resources, and will reach approximately 250.000 barrels of oil equivalent per day (boe / d) of equity oil and gas production in the next 5 years. It holds interests in 16 licenses (including 6 exploration blocks) and in Angola LNG JV. Azule Energy will also acquire Eni's stake in Solenova, a solar company jointly owned by Sonangol, and the collaboration in the Luanda Refinery.
Azule Energy boasts a number of major new projects that will go into production in the coming years, ensuring organic growth based on exploratory 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 the growing economy of the country. Angola and will strengthen its role as a global LNG exporter. The JV also holds a significant exploration acreage of over 30.000 sq km in Angola's most prolific basins, which will make it possible to leverage its proximity to existing infrastructures.
Azule Energy's leadership team draws on the experience and expertise of Eni and bp, and will report to a six-person board made up of three representatives of Eni and three of bp, in line with the shares owned by the company. All the staff of bp Angola and Eni Angola have joined Azule Energy.
Eni and bp share ambitious goals for Azule Energy in achieving environmental and sustainability results. They believe that by combining their efforts, they will achieve greater operational efficiency and drive investment, job creation and growth in Angola. Eni and bp also expect that Azule Energy's new integrated and independent operating model will lead to significant cost savings, mainly thanks to operational synergies in logistics and technology.
The incorporation of the JV occurs after the conditions precedent have been met, including obtaining third party financing of $ 2,5 billion in the form of pre-export financing, and after receiving regulatory approvals.
Bernard Looney, managing director of bp, said: “The formation of Azule Energy is an important step for bp, Eni and Angola. By combining our Angolan operations and drawing on the experience of bp and Eni, the JV will continue to safely and efficiently develop Angola's resilient hydrocarbon resources, and pursue new opportunities in the oil, gas and other energy sectors. Azule Energy will continue our commitment in Angola and will create real value for both companies and the country ”.
Claudio Descalzi, Eni's Chief Executive Officer, said: “This is an important milestone for Eni which marks a further step forward in Eni's strategy of enhancing all our best assets. A new strong reality is born, which combines our experience, our skills and our 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, CEO of Azule Energy, said: “I feel honored to be the first CEO of the company. Together with a highly competent and motivated leadership team, we are committed to developing the full potential of the company's portfolio of development and exploration opportunities. With financial discipline and a focus on HSE, Azule Energy will maximize the value of assets for the benefit of Angola and shareholders ”.
Health, safety and environmental performance, project delivery and production efficiency will be priority areas for the new company. Azule Energy will maintain access to world-class technologies and best practices through targeted technical support from Eni and bp. The social investment commitments of bp and Eni in Angola will also continue.
After announcing their intention to set up the joint venture in May 2021, bp and Eni worked with the Angolan government and the establishment of Azule Energy was subject to all customary government and other approvals.