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Eni, BP to Form 50/50 JV by Combining Angola Businesses
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Eni SPA (E - Free Report) entered an agreement with BP plc (BP - Free Report) to create Azule Energy — a 50/50 joint venture (JV) combining their Angola businesses.
Azule Energy is expected to be the largest oil and gas producer in Angola, with stakes in 16 licenses and the Angola LNG joint venture. The JV could be beneficial to the country’s troubled oil industry. It will be capable of producing more than 200,000 barrels of oil and gas equivalent a day (boe/d).
In 2021, Eni and BP announced plans to combine their Angola businesses into a self-funded company. The consolidation is part of the companies’ restructuring of oil and gas businesses amid their transition to a more sustainable, low-carbon economy. It will also help the companies to reduce debt.
The new company will be independently managed. It will have a portfolio of projects, which are likely to begin in the next few years. The portfolio includes the new Agogo and PAJ oil projects in Blocks 15/06 and 31, respectively. Eni is the operator of Block 15/06 Cabinda North, while BP operates Block 31 offshore Angola.
Azule Energy will develop the New Gas Consortium project, which will support the energy requirements of Angola’s growing economy, its path to decarbonization and enhance its responsibilities as a global LNG player. Azule Energy will also assume Eni’s stake in Solenova, which is jointly held with state-owned company Sonangol.
The combination of BP and Eni’s efforts will create more efficient operations, and provide opportunities for additional investments, job creation and growth in Angola. The company's formation is a step forward toward accelerating growth through financially independent companies.
By combining two world-class businesses, Azule Energy will leverage synergies and premium assets, thereby enhancing activities in Angola. It will have one of the largest portfolios of production, development and exploration opportunities in Sub-Saharan Africa. Notably, the JV will continue BP and Eni’s social investment commitments in Angola.
Company Profile & Price Performance
Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.
Shares of Eni have underperformed the industry in the past six months. The stock has gained 12.4% compared with the industry’s 37.8% growth.
Oasis Petroleum is an independent explorer that engages in the acquisition and development of oil and natural gas resources. As of 2021-end, OAS had a proved reserve base of 250.8 million barrels of oil equivalent (MMBoe) in the Williston Basin.
Oasis Petroleum is expected to see earnings growth of 192% in 2022. OAS currently pays a quarterly dividend of 58.5 cents ($2.34 annualized). It recently completed a $100-million share repurchase program.
Centennial Resource Development, Inc. is an independent oil and gas exploration and production company. Centennial announced its proved reserves for 2021-end at 305 MMBoe, representing growth from 299 MMBoe at the end of the prior year.
Centennial is expected to see earnings growth of 98.6% in 2022. CDEV recently announced the launch of its stock repurchase program of $350 million. The authorization of the plan is for two years.
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Eni, BP to Form 50/50 JV by Combining Angola Businesses
Eni SPA (E - Free Report) entered an agreement with BP plc (BP - Free Report) to create Azule Energy — a 50/50 joint venture (JV) combining their Angola businesses.
Azule Energy is expected to be the largest oil and gas producer in Angola, with stakes in 16 licenses and the Angola LNG joint venture. The JV could be beneficial to the country’s troubled oil industry. It will be capable of producing more than 200,000 barrels of oil and gas equivalent a day (boe/d).
In 2021, Eni and BP announced plans to combine their Angola businesses into a self-funded company. The consolidation is part of the companies’ restructuring of oil and gas businesses amid their transition to a more sustainable, low-carbon economy. It will also help the companies to reduce debt.
The new company will be independently managed. It will have a portfolio of projects, which are likely to begin in the next few years. The portfolio includes the new Agogo and PAJ oil projects in Blocks 15/06 and 31, respectively. Eni is the operator of Block 15/06 Cabinda North, while BP operates Block 31 offshore Angola.
Azule Energy will develop the New Gas Consortium project, which will support the energy requirements of Angola’s growing economy, its path to decarbonization and enhance its responsibilities as a global LNG player. Azule Energy will also assume Eni’s stake in Solenova, which is jointly held with state-owned company Sonangol.
The combination of BP and Eni’s efforts will create more efficient operations, and provide opportunities for additional investments, job creation and growth in Angola. The company's formation is a step forward toward accelerating growth through financially independent companies.
By combining two world-class businesses, Azule Energy will leverage synergies and premium assets, thereby enhancing activities in Angola. It will have one of the largest portfolios of production, development and exploration opportunities in Sub-Saharan Africa. Notably, the JV will continue BP and Eni’s social investment commitments in Angola.
Company Profile & Price Performance
Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.
Shares of Eni have underperformed the industry in the past six months. The stock has gained 12.4% compared with the industry’s 37.8% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Eni currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Oasis Petroleum is an independent explorer that engages in the acquisition and development of oil and natural gas resources. As of 2021-end, OAS had a proved reserve base of 250.8 million barrels of oil equivalent (MMBoe) in the Williston Basin.
Oasis Petroleum is expected to see earnings growth of 192% in 2022. OAS currently pays a quarterly dividend of 58.5 cents ($2.34 annualized). It recently completed a $100-million share repurchase program.
Centennial Resource Development, Inc. is an independent oil and gas exploration and production company. Centennial announced its proved reserves for 2021-end at 305 MMBoe, representing growth from 299 MMBoe at the end of the prior year.
Centennial is expected to see earnings growth of 98.6% in 2022. CDEV recently announced the launch of its stock repurchase program of $350 million. The authorization of the plan is for two years.