European Commission Clears Angola LNG Sale
The European Commission has today cleared the way for the acquisition of Angola LNG by several oil and gas majors.
The news means Total, BP, Chevron, Eni and Sonangol are approved to enter a joint venture to acquire the Angolan company Angola LNG. Through the venture, the companies would export liquefied natural gas (LNG) produced in Angola to various customers across the world.
The European Commission said its decision to approve the transaction came about because the transaction was not likely to negatively affect competition on the market. It said there were enough viable competitors on the market to ensure a lack of monopoly.
"Given the JV’s (joint venture's) moderate anticipated market share and the presence of a number of credible competitors, the Commission found that the joint venture and its parent companies will continue to face sufficient competitive constraints on the market for the wholesale supply of LNG," it said today in a statement.
Despite Total, BP and Eni's access to re-gasification terminals, the European Commission said this would not impede competitors from accessing these terminals, due to EU laws surrounding the practice.
Chevron holds the majority stake in the Angola LNG joint venture with a 36.4 per cent share. Angola's Sonagol holds the next largest stake at 22.8 per cent. The three remaining shareholders, Eni, Total and BP, each hold an equal stake, at 13.6 per cent.