By Kelvin ALohan with agency report
BP and Eni have entered a non-binding memorandum of understanding to progress detailed discussions on combining their upstream portfolios in Angola, including all their oil, gas and LNG interests in the country, according to Offshore report.
According to the companies, the joint venture company would be expected to generate significant synergies, create more efficient operations, and increase investment and growth in the basin.
BP and Eni have informed the Angolan government of their intention, Offshore reports, adding that any final transaction will be subject to relevant governmental, regulatory, and partner approvals.
The companies have appointed advisors that will support them in raising finance for the new joint venture.
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.