• Natural Gas News

    BP in talks to transfer Algerian assets to Eni: press

Summary

The pair are looking at several options for the assets.

by: Joseph Murphy

Posted in:

Complimentary, NGW News Alert, Natural Gas & LNG News, Africa, Corporate, Mergers & Acquisitions, Exploration & Production, News By Country, Algeria

BP in talks to transfer Algerian assets to Eni: press

BP is in talks on a potential transfer of its assets in Algeria to Italy’s Eni, Reuters reported on June 1 citing sources.

The transfer will either be an outright sale or could involve BP acquiring interests in Eni assets elsewhere in the world, potentially in its Coral South FLNG project in Mozambique, the news agency said. The pair are also interested in creating a joint venture in Algeria, similar to the partnership they are looking to form in Angola.

The deal would enable BP to offload its 45.9% stake in the In Amenas gas processing plant, which it has been trying to divest since 2019. The UK major also has a 33% interest in the Salah gas plant. International oil majors have previously had difficulty selling assets in Algeria because of opposition from local authorities.

According to its annual report, BP produced 141mn ft3/day of gas and 6,000 barrels/d of oil in Algeria last year. Eni’s operations in the north African state are larger, with the company producing 81,000 barrels of oil equivalent/d of hydrocarbons, including 152.5mn ft3/d of gas, in 2020.

Reuters connected the planned transfer with BP’s new strategy to shift its focus away from oil and gas and towards renewables and other low-carbon technologies. The company expects to cut its oil and gas output by 40% over the coming decade, by divesting assets and allowing more natural decline at its existing ones.