London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950
info@mrcplast.com

Our Clients

Order Informer

 
Home > News >
 

BP and Eni to form energy company in Angola

May 20/2021

MOSCOW (MRC) -- BP and Eni have entered into talks to merge their oil and gas operations in Angola to form one of Africa's largest energy companies, said Reuters.

The two companies have signed a non-binding memorandum of understanding and are in discussions on a joint venture that will include their LNG facilities, they said in a statement. A business plan will be agreed to allow the companies "to capture future opportunities in exploration, development and possibly portfolio growth, both in Angola and regionally."

Spinning off oil and gas assets is seen as a way for BP and Eni to squeeze more out of their oil and gas assets as the two companies prepare to shift towards renewable energy. The two companies have successful joint ventures in Norway, which serve as a model for the Angolan model.

"We see the combined Angola asset JV position providing for improved capital allocation, cost synergies, business efficiencies and an enhanced focus on value over volume," Santander analyst Jason Kenney said in a note. 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. The report said Eni had held discussions with BP.

Oil and gas production from both Angolan portfolios would reach around 200,000 barrels of oil equivalent per day, BP and Eni said in a statement. The 50-50 joint venture will also be self-funded, the companies said.

"The aim is to create a long-term future for operations in the country that will have a material portfolio of production, reserves and exploration prospects - one of the largest in sub-Saharan Africa," BP's head of production and operations Gordon Birrell said in an internal statement seen by Reuters. The talks are expected to last several months, according to a company source.

As per MRC, Rosneft, the largest state oil company in the Russian Federation, was the first Russian oil company to decide to develop its hydrogen business. British BP will act as a partner. Together they will study the prospects for new projects using renewable energy sources (RES), as well as the use of technologies for capturing, utilizing and storing CO2. Earlier in Russia, Gazprom and Novatek spoke about their intention to create a hydrogen business and new technologies for the disposal of harmful emissions.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.

BP plc (until May 2001 - British Petroleum) is a British oil and gas company, the second largest publicly traded oil and gas company in the world.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, neftegaz, petrochemistry, British petroleum, Eni.
Category:General News
|
| More

Leave a comment

MRC help

 


 All News   News subscribe