The 2 corporations have signed a non-binding memorandum of understanding and are in discussions on a three way partnership that can embody their liquefied pure fuel (LNG) services, they mentioned in an announcement.
A marketing strategy can be agreed to permit the businesses “to seize future alternatives in exploration, improvement and probably portfolio progress, each in Angola and regionally.”
Spinning off oil and fuel property is seen as a means for BP and Eni to squeeze extra out of their oil and fuel property as the 2 corporations put together to shift in the direction of renewable power.
The 2 corporations have profitable joint ventures in Norway, which function a mannequin for the Angolan mannequin.
“We see the mixed Angola asset JV place offering for improved capital allocation, value synergies, enterprise efficiencies and an enhanced deal with worth over quantity,” Santander analyst Jason Kenney mentioned in a notice.
Reuters reported final month that Eni was contemplating spinning off oil and fuel operations in West Africa and the Center East into new joint ventures to assist cut back debt and fund its shift to low-carbon power. The report mentioned Eni had held discussions with BP. read more
Oil and fuel manufacturing from each Angolan portfolios would attain round 200,000 barrels of oil equal per day, BP and Eni mentioned in an announcement.
The 50-50 three way partnership may even be self-funded, the businesses mentioned.
“The goal is to create a long-term future for operations within the nation that can have a cloth portfolio of manufacturing, reserves and exploration prospects – one of many largest in sub-Saharan Africa,” BP’s head of manufacturing and operations Gordon Birrell mentioned in an inside assertion seen by Reuters.
The talks are anticipated to final a number of months, in line with an organization supply.
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