BP and Eni are mulling merging their oil and gas operations in Angola into a new joint venture, a move that would create one of Africa’s largest energy businesses.
The two firms have entered into a memorandum of understanding (MoU) on a potential merger, it was announced today.
In a statement, BP said that production from the combined portfolios would be around 200,000 barrels of oil equivalent per day.
“The companies believe that combining their efforts in a new joint venture company would bring significant opportunities for them to jointly boost future developments and operations in Angola”, the oil giant said.
“In particular, it would be expected to generate significant synergies, create more efficient operations, and increase investment and growth in the basin.
“The new venture would reflect both companies’ commitment to continue developing the upstream sector potential of Angola.”
The new venture would be expected to be self-funded, BP added.
The FTSE 100 firm has had a presence in the west African country since the 1970s and currently employs around 1,000 people there.
Oil production in Angola comes almost entirely from offshore fields off the coast of Cabinda and deepwater fields in the Lower Congo Basin, where both BP and the Italian firm have several assets.