BP, Eni eye upstream Angola joint venture

European oil companies Eni and BP have signed a non-binding memorandum of understanding (MoU) to progress detailed discussions on a joint venture in Angola, Eni said May 19.

It would combine their upstream portfolios, including all their oil, gas and LNG interests in the country. They have appointed advisors to help raise finance for the new joint venture which will require government approval. 

The two are already partners upstream elsewhere, including the Vico joint venture covering Indonesia's upstream. They are also jointly looking at an exploration block in Oman; and they are equity partners in the Zohr field off Egypt.

They said the venture company would boost future upstream developments and operations in Angola and the region. This would generate savings, raise efficiency and spur investment and growth. The self-funded venture would reflect both companies’ commitment to continue developing the upstream sector potential of Angola.

Eni is operator of block 15/06, and exploration blocks Cabinda North, Cabinda Centro, 1/14 and soon 28 and is also operator of the New Gas Consortium (NGC). In addition, Eni has a stake in the non-operated blocks 0 (Cabinda), 3/05, 3 / 05A, 14, 14 K / A-IMI, 15 and in Angola LNG.

BP is operator of Blocks 18 and 31 offshore Angola, and has non-operated stakes in blocks 15, 17, 20, and soon 29. bp also has non-operated interests in the NGC and Angola LNG. The NGC was set up in 2019 and its other members are US Chevron, French Total and state Sonangol. The five companies are also partners in the 5.3mn metric tons/year Angola LNG project.