6-K
1
a5657e.htm
ENI AND BP FINALISE AGREEMENT FOR NEW ANGOLA JV
a5657e
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the
period ended 11 March, 2022
BP p.l.c.
(Translation
of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F |X| Form 40-F
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----------------
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of
1934.
Yes No
|X|
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press
release
11 March 2022
Eni and bp finalise agreement to create new
independent joint venture in Angola
Luanda,
Angola − bp and Eni confirmed today that they have signed
an agreement to form a new 50/50 independent company, Azule
Energy, a bp and Eni company, through the combination of
the two companies' Angolan businesses. The agreement follows the
memorandum of understanding between the companies agreed in May
2021.
Azule
Energy will be a new international energy company, independently
managed, with more than 200,000 barrels equivalent a day (boe/d) of
net oil and gas production and two billion barrels equivalent of
net resources. It is expected to be Angola's largest producer,
holding stakes in 16 licences, as well as participating in the
Angola LNG joint venture. Azule Energy will also take over Eni's
stake in Solenova, a solar company jointly held with
Sonangol.
Azule
Energy will have a strong pipeline of new projects starting up over
the next few years, including the new Agogo and PAJ oil projects in
Blocks 15/06 and 31 respectively. It will also develop the New Gas
Consortium (NGC), the first non-associated gas project in the
country, which will support the energy needs of Angola's growing
economy, its decarbonization path and strengthen its role as a
global LNG player.
bp
and Eni share common goals for Azule Energy in achieving
environmental and sustainability ambitions.
bp
and Eni believe combining their efforts with a long-term
perspective will create more efficient operations and offer the
potential for increased investment, job creation and growth in
Angola. Azule Energy will continue to develop the full potential of
the country's upstream sector, while also positioning itself to
capture new opportunities from the energy transition with the
growing role of gas and renewables in its portfolio.
Bernard
Looney, bp's chief executive, said: "Angola has long been important
for bp operations and this innovative new venture underscores and
enables our continued commitment to the country. Eni is a valued
partner to be working with in the region. Azule Energy draws
on our combined strengths and skills and, more importantly, is
anchored in our shared values and beliefs about what the future of
energy should be. Ultimately Azule Energy will be able to drive
efficiencies and realize new opportunities across an expanded and
truly exciting portfolio."
Claudio
Descalzi, CEO of Eni, said: "The creation of Azule Energy is a
further step in advancing our strategic approach to accelerate
growth through focused lean and financially independent companies.
Combining two world-class businesses into one stronger team, Azule
Energy will leverage synergies and high-quality assets, boosting
activities in Angola and will have one of the largest portfolios of
production, development and exploration opportunities in
Sub-Saharan Africa. bp shares our values and our approach to just
transition and we are very pleased to be partners in this
initiative."
Health,
safety and environmental performance, project delivery and
production efficiency will be priority areas for the new
venture. The joint venture will maintain access to world-class
technologies and best practices through focused areas of technical
support from Eni and bp. Azule Energy will continue bp and Eni's
social investment commitments in Angola.
Since
announcing the intent to form the joint venture in May 2021, bp and
Eni have worked closely with the Angolan government and the
creation of Azule Energy will be subject to all customary
governmental and other approvals, with the aim of completing the
transaction in the second half of 2022. Once set up, Azule Energy
will be equity accounted by bp and Eni. Hydrocarbon production and
greenhouse gas emissions will continue to be reported on an
equity share basis.
Currently
Eni is operator of Blocks 15/06 Cabinda North, Cabinda Centro,
1/14, 28 and soon 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 29. bp also has
non-operated interests in NGC and Angola LNG.
Further information:
bp press office, London:bppress@bp.com,
+44 (0)7831 095541
Notes to editors:
●
Eni and bp have signed an agreement to
form a 50/50 incorporated joint venture that will combine the two
companies' Angolan businesses.
●
The main assets included in this
transaction are:
−
bp: bp is operator of Blocks 18 and 31 offshore
Angola, and has non-operated stakes in blocks 15, 17, 20 and 29. bp
also has non-operated interests in NGC and Angola
LNG.
−
Eni: Eni is operator of Blocks 15/06, Cabinda
North, Cabinda Centro, 1/14, 28 and soon NGC. In addition, Eni has
stakes in the non-operated blocks 0 (Cabinda), 3/05, 3/05A, 14, 14
K/A-IMI, 15 and in Angola LNG.
●
bp's total production in Angola today
is approximately 100,000 boe/d. Following completion of this
transaction bp's equity share of Azule Energy's production is
expected to be approximately 100,000 boe/d.
●
Eni's total production in Angola today
is approximately 100,000 boe/d. Following completion of this
transaction Eni's equity share of Azule Energy's production is
expected to be approximately 100,000 boe/d
●
In connection with this transaction,
Azule Energy has an obligation to acquire Eni's stake in
Solenova.
●
This transaction constitutes a Class 2
transaction for bp under UK listing rules.
●
The value of the bp gross assets that
are the subject of this transaction as at 31 December, 2021 was
approximately $6.8 billion and in the year ended 31 December 2021,
the assets generated a pre-tax profit of approximately $1.1
billion.
●
The value of the Eni gross assets that
are the subject of this transaction as at 31 December, 2021 was
approximately $7.3 billion and in the year ended 31 December, 2021,
the assets generated a pre-tax profit of approximately $0.5
billion.
●
Under the terms of the agreement each
of bp and Eni will receive a 50% shareholding in Azule Energy. Eni
will receive a net adjustment of $338 million to be settled through
Azule Energy, with 62.5% payable upon completion and 37.5% payable
on the first anniversary of the transaction
closing.
●
bp and Eni will each retain 50% of
Azule Energy in accordance with the shareholder arrangement. Azule
Energy will be equity accounted by bp and Eni. Hydrocarbon
production and GHG emissions will be reported on an equity share
basis.
Cautionary
statement:
In
order to utilize the 'safe harbor' provisions of the United States
Private Securities Litigation Reform Act of 1995 (the
'PSLRA'), bp is providing the following cautionary statement. This
press release contains certain forward-looking
statements - that is, statements related to future, not past events
and circumstances - which may relate to one or more of the
financial condition, results of operations and businesses of bp and
certain of the plans and objectives of bp with respect to
these items. These statements are generally, but not
always, identified by the use of words such as
'will', 'expects', 'is expected to', 'aims',
'should', 'may', 'objective', 'is likely to', 'intends',
'believes', 'anticipates', 'plans', 'we see' or
similar expressions. Actual results may differ from those expressed
in such statements, depending on a variety of factors including the
risk factors set forth in our most recent Annual Report
and Form 20-F under "Risk factors" and in any of our more
recent public reports.
Our most recent Annual Report and Form 20-F and
other period filings are available on our
website at www.bp.com,
or can be obtained from the SEC by calling 1-800-SEC-0330 or on its
website at www.sec.gov.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
