BP and ENI have confirmed that Azule Energy, a 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 2 billion 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 6 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 has a pipeline of new projects that are scheduled to come on stream over the next few years.
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 square kilometres in Angola’s most prolific basins, allowing it to leverage proximity with existing infrastructure.
Azule Energy’s leadership team will report to a six-person board comprising three BP and three ENI representatives. All BP Angola and ENI Angola staff have joined Azule Energy. “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,” says ENI CEO Claudio Descalzi.
The JV incorporation takes place after the pending conditions were met, among them having secured a third-party financing of $2.5 billion in the form of Pre-Export Financing, and after receiving regulatory approvals.
Adriano Mongini, CEO of Azule Energy, said: “I feel honoured to be the first CEO of the company. Together with a highly competent and motivated leadership team we are committed to develop the full potential of the company portfolio of development and exploration opportunities. With finance discipline and focus on HSE, Azule Energy will maximize the value of the assets for the benefit of Angola and the of the shareholders.”