BP, ENI to merge oil and gas operations in Angola

BP and Eni said on Wednesday they had entered into talks to merge their oil and gas operations in Angola to form one of Africa’s largest energy companies.

The two companies have signed a non-binding memorandum of understanding and are in discussions on a joint venture that will include their liquefied natural gas (LNG) facilities, they said in a statement.

Oil and gas production from both portfolios would reach around 200,000 barrels of oil equivalent per day, BP said in a statement.

The new company would be expected to generate significant synergies, create more efficient operations and increase investment and growth in the basin, the statement said. It will also be self-funded, it said.

Reuters reported last month that Eni was considering spinning off oil and gas operations in West Africa and the Middle East into new joint ventures to help reduce debt and fund its shift to low-carbon energy.

Suzan O/REU