Page 12 - AfrOil Week 21 2021
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AfrOil PROJECTS & COMPANIES AfrOil
BP and Eni look to merge
Angola operations
WEST AFRICA MAJORS BP and Eni last week announced plans exploration blocks and will soon add Block
to combine their oil and gas interests in Angola 28. It also has non-operated stakes in Blocks 0
through a joint venture (JV) that would become (Cabinda), 3/05, 3 / 05A, 14, 14 K / A-IMI, 15 and
one of the continent’s largest producers. in Angola LNG, the latter alongside BP.
In a joint statement, the companies said that The UK-listed firm operates Blocks 18 and 31
the JV “would be expected to generate significant offshore Angola, and has non-operated stakes in
synergies, create more efficient operations and Blocks 15, 17 and 20, with Block 29 to be added
increase investment and growth in the basin”, soon. It is also part of the NGC.
noting that the move illustrated both companies’ The companies expect the merger to result
commitment to developing Angola’s upstream. in “significant opportunities” to “boost future
As a result, they will develop a joint business developments” and increase investment.
plan “to capture future opportunities in explo- The move builds upon the success of JVs
ration, development and possibly portfolio between the two partners in Norway, which are
growth, both in Angola and regionally”. expected to act as the basis of the Angolan tie-up,
The merged company will have a combined which will be on held on a 50:50 basis.
oil and gas production of 200,000 barrels of oil The move comes as a shot in the arm for
equivalent per day (boepd) as well as a 27.2% Luanda, whose upstream sector has spiralled
share in Angola LNG. Eni is the operator of the downward as underinvestment has led to a more
New Gas Consortium (NGC), Block 15/06, and than 33% drop in oil production over the past
the Cabinda North, Cabinda Centro and 1/14 six years.
P12 www. NEWSBASE .com Week 21 27•May•2021
