Overview
BP’s operations in Angola are now conducted primarily through Azule Energy, a 50-50 joint venture formed with ENI in 2022 that consolidated both companies’ upstream and midstream assets in Angola into a single entity. The creation of Azule Energy represented one of the largest corporate restructurings in Angola’s oil sector history, creating a combined operator with significant deepwater production from multiple offshore blocks.
Azule Energy Joint Venture
Azule Energy was formed to optimize BP’s and ENI’s combined Angolan operations, which had significant geographic and operational overlap:
| Aspect | Detail |
|---|---|
| Ownership | 50% BP, 50% ENI |
| Headquarters | Luanda, Angola |
| Key blocks | Blocks 15/06, 17, 18, 31 |
| Production | Significant share of Angola’s ~1.03M bpd total |
| Assets included | Upstream, LNG interests, solar projects |
The joint venture holds interests in some of Angola’s most productive deepwater blocks, including equity stakes in the Angola LNG plant in Soyo. Azule Energy operates Block 15/06, which includes the Agogo discovery — one of the most significant finds in Angola’s deepwater in recent years.
Historical Presence
BP has been present in Angola since the 1970s, building its portfolio through a series of exploration and development campaigns in the deepwater Lower Congo Basin. Key historical milestones include:
- Block 18: BP operated Block 18, which includes the Greater Plutonio development that commenced production in 2007, producing from multiple subsea wells tied back to an FPSO (Floating Production, Storage and Offloading) vessel.
- Block 31: BP held operatorship of Block 31, one of the deepest water blocks in Angola’s offshore, with the PSVM (Plutão, Saturno, Vénus, Marte) development starting production in 2012.
- Angola LNG: BP holds a 13.6% stake in the Angola LNG plant through the Azule Energy structure.
Economic Significance
BP’s Angolan operations — now channeled through Azule Energy — contribute meaningfully to Angola’s oil production of approximately 1.03 million barrels per day. With oil accounting for 90%+ of exports and 50-60% of fiscal revenue, the operational performance and investment decisions of major operators like Azule Energy directly affect:
- Fiscal revenue: Production royalties, profit oil, and petroleum income tax flowing to the Angolan state through MINFIN
- FX supply: Oil export revenues are the primary source of foreign currency in Angola, supporting the BNA’s management of the kwanza (USD/AOA at 914.60) and foreign exchange reserves ($15.3 billion)
- Employment and local content: Azule Energy is subject to Angolanização requirements, contributing to workforce nationalization and local procurement
Investor Considerations
For investors in Angola’s capital markets, BP/Azule Energy’s investment plans are a leading indicator of future production trends and fiscal revenue projections. The Agogo development on Block 15/06 is expected to be a key source of new production. Investors in Angolan Treasury bonds and Treasury bills should monitor Azule Energy’s production guidance alongside Brent crude pricing (~$74.50/bbl) to assess the sovereign’s debt-servicing capacity (debt-to-GDP at 59.9%). Angola’s post-OPEC exit production policy allows Azule Energy to operate without cartel quota constraints, potentially supporting production maximization strategies.