Azule Energy: The BP-Eni Joint Venture Reshaping Angola's Oil Sector

Azule Energy: Africa’s Largest Independent E&P by Production

Azule Energy is a 50:50 joint venture between BP plc and Eni SpA, formed in 2022 to consolidate and optimise the two companies’ overlapping petroleum interests in Angola. With 16 licences, production exceeding 200,000 barrels of oil equivalent per day (boed), and leadership of the New Gas Consortium (NGC), Azule Energy is the largest independent exploration and production company in Africa by production volume and the single most transformative corporate development in Angola’s petroleum sector in the past decade.

The creation of Azule Energy reflected a recognition by both BP and Eni that their Angolan portfolios—which included interests in many of the same blocks and shared infrastructure—could be operated more efficiently under a single management structure. The joint venture consolidates assets valued at approximately USD 12 to USD 16 billion and provides the scale and operational focus to pursue Angola’s next generation of petroleum developments, particularly in gas commercialisation.

Corporate Structure and Governance

Formation

Azule Energy was formed on 31 August 2022 following regulatory approvals from the Angolan government, ANPG, and competition authorities. The company is incorporated in Angola, a deliberate choice that strengthens its domestic credentials and alignment with local content requirements.

Shareholders and Governance

BP and Eni each hold 50 percent of Azule Energy. The company is governed by a board of directors with equal representation from both shareholders, plus independent directors. The CEO and senior management team are recruited from both parent companies and from the external market.

The joint venture structure provides Azule Energy with access to both shareholders’ technical capabilities—BP’s deepwater expertise and Eni’s subsea engineering and project execution capabilities—while operating with the agility and focus of an independent.

Key Statistics

• Production: 200,000+ boed (approximately 150,000+ bpd crude oil plus 50,000+ boed gas and condensate)
• Licences: 16 (operated and non-operated)
• Employees: Approximately 2,500 to 3,500
• Headquarters: Luanda, Angola
• Key operated blocks: Block 15/06, Block 18, Block 31

Asset Portfolio

Block 15/06 (Operated)

Block 15/06 hosts several producing developments in the deepwater Lower Congo Basin, including satellite tiebacks to existing FPSO infrastructure. The block was carved out of the original Block 15 (operated by ExxonMobil) and has been developed by Eni (now Azule Energy) through a series of phased subsea developments.

Key producing assets include the N’Goma FPSO and associated subsea wells. Block 15/06 production contributes significantly to Azule Energy’s total output.

Block 18 (Operated)

Block 18, in the deepwater Lower Congo Basin, hosts the Greater Plutonio development produced through the Plutonio FPSO. The development, originally sanctioned by BP, has produced since 2012 and includes the Plutonio, Galio, Cromio, Cobalto, and Paladio fields.

Block 31 (Operated)

Block 31 is one of Angola’s largest deepwater concessions, home to the PSVM (Plutao, Saturno, Venus, Marte) development produced through the PSVM FPSO. Block 31 also contains significant exploration potential, with several undeveloped discoveries and exploration prospects.

Non-Operated Interests

Azule Energy holds non-operated participating interests in several blocks operated by other companies, including:

• Block 17 (operated by TotalEnergies)
• Block 0 and Block 14 (operated by Chevron)
• Various exploration blocks awarded in recent licensing rounds

The New Gas Consortium (NGC)

Strategic Significance

Azule Energy leads the New Gas Consortium (NGC), the most important gas infrastructure initiative in Angola’s history. The NGC aggregates associated gas from multiple offshore blocks—including Azule Energy’s operated blocks and partner blocks operated by Chevron and TotalEnergies—and delivers it to the Angola LNG plant at Soyo and the domestic market.

NGC Infrastructure

The NGC’s infrastructure programme includes:

• Quiluma gas gathering system: Capturing gas from the Quiluma, Sanha, and related fields in the shallow and deepwater Lower Congo Basin.
• Sanha Lean Gas Connection (December 2024): A major gas processing and pipeline system connecting Chevron’s Block 0/14 gas production to the Angola LNG plant. This project was delivered in partnership with Chevron.
• Future phases: Additional gas gathering infrastructure from Blocks 15/06, 18, and 31, targeting total NGC delivery capacity of 3.4 billion cubic metres per year by the late 2020s.

The NGC addresses multiple strategic objectives: reducing the gas flaring that contributes to Angola’s methane emissions, providing feedstock for LNG export, supplying gas for domestic power generation, and generating carbon credit opportunities.

Gajajeira Gas Discovery (July 2025)

In July 2025, Azule Energy announced the Gajajeira gas discovery in Block 18, estimated at over 1 trillion cubic feet (tcf) of gas resources. Gajajeira is one of the largest gas discoveries in Angola in recent years and could significantly expand the NGC’s gas resource base.

The discovery is significant for several reasons:

1. Resource scale: At 1+ tcf, Gajajeira is large enough to support a dedicated gas development or significant expansion of the NGC infrastructure.
2. Proximity to infrastructure: Block 18’s existing FPSO and subsea infrastructure provides a potential tie-back point for Gajajeira gas development.
3. Angola LNG supply: Gajajeira gas could extend the operating life of the Angola LNG plant well beyond its original design gas supply period.
4. Domestic gas supply: The discovery supports Angola’s objective of increasing domestic gas availability for power generation, replacing expensive diesel generation.

Production and Financial Performance

Production Profile

Azule Energy’s combined production of 200,000+ boed makes it the single largest producer in Angola after Sonangol (by equity production). The production base is diversified across multiple blocks and development phases, providing resilience against individual field decline.

Production has been sustained through ongoing infill drilling programmes, water injection optimisation, and subsea integrity management. The Decree 8/24 fiscal terms improve the economics of incremental production programmes across Azule Energy’s mature fields, incentivising continued investment.

Financial Structure

As a 50:50 joint venture, Azule Energy’s financial results are reported proportionally in BP’s and Eni’s respective financial statements. The company’s revenue—estimated at USD 6 to USD 10 billion per year at current production levels and oil prices—is shared equally between the two shareholders.

Azule Energy’s capital expenditure programme is estimated at USD 1 to USD 2 billion per year, covering maintenance and development drilling, NGC gas infrastructure, and exploration. For a broader perspective on operator spending patterns, see our oil and gas investment opportunities 2026 outlook.

ESG and Energy Transition

Azule Energy’s ESG strategy reflects the commitments of both parent companies:

• Gas flaring reduction: The NGC is the single most significant flaring reduction initiative in Angola, targeting elimination of routine flaring from participating blocks by 2030.
• Methane management: As successors to BP and Eni (both OGMP 2.0 participants), Azule Energy implements comprehensive methane emissions measurement and reduction programmes.
• Local content: Azule Energy’s incorporation in Angola and its leadership of the NGC demonstrate strong alignment with Angola’s local content and economic development objectives.
• Community investment: The company maintains community investment programmes across its operational areas, including education, healthcare, and infrastructure projects.

Workforce and Organisation

Azule Energy employs approximately 2,500 to 3,500 staff in Angola, drawn from both BP’s and Eni’s former Angola organisations. The company has worked to build a unified corporate culture from two distinct parent company traditions, with an emphasis on operational excellence, safety, and Angolan national development.

The company’s operational headquarters are in Luanda, with logistics bases in Soyo and Cabinda. Technical support is provided through the parent companies’ global engineering centres, though Azule Energy is progressively developing independent technical capability.

Strategic Outlook

Azule Energy’s strategy centres on three priorities:

1. NGC execution: Complete the remaining phases of the NGC gas gathering infrastructure, securing long-term gas supply for Angola LNG and the domestic market.
2. Gajajeira development: Appraise and develop the Gajajeira gas discovery, potentially as a cornerstone of the next phase of NGC expansion.
3. Production sustenance: Maintain crude oil production from existing fields through infill drilling, enhanced recovery, and subsea integrity management, leveraging Decree 8/24 fiscal terms where applicable.

The potential for an Azule Energy IPO has been discussed in industry circles, following the model established by Vivo Energy (a Shell-BP downstream JV) and other Africa-focused energy companies. A public listing would provide additional growth capital and governance transparency, though no formal IPO plans have been announced.

Conclusion

Azule Energy’s creation in 2022 was a strategic masterstroke that transformed two mature, overlapping portfolios into a focused, Angola-centred exploration and production company with the scale and capability to lead the country’s gas development strategy. The NGC, the Gajajeira discovery, and the company’s 200,000+ boed production base position Azule Energy as the most influential petroleum company in Angola after Sonangol itself. For ANPG and the Angolan government, Azule Energy is an essential partner for gas commercialisation, flaring reduction, and the just energy transition.