BP, ENI in talks to merge Angola oil & gas interests

(Sharecast News) - BP and Eni on Wednesday said they had start talks on a potential merger of their oil and gas operations in Angola.
The duo signed a non-binding memorandum of understanding and are now in discussions on a self-funded joint venture that will include their liquefied natural gas (LNG) facilities.

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

Reports last month stated 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.

"In particular, it would be expected to generate significant synergies, create more efficient operations and increase investment and growth in the basin," the company said.

A business plan for the company would be agreed by Eni and BP to allow it to capture future opportunities in exploration, development and possibly portfolio growth, both in Angola and regionally.