BP, Eni in talks to merge Angolan oil and gas businesses

 BP, Eni in talks to merge Angolan oil and gas businesses

A BP logo is seen at a petrol station in central London. REUTERS/Stefan Wermuth

BP (BP.L) and Eni (ENI.MI) said on Wednesday they had entered into talks to merge their oil and gas operations in Angola to form one of Africa’s largest energy companies.

The two companies have signed a non-binding memorandum of understanding and are in discussions on a joint venture that will include their liquefied natural gas (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…

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