By Ron Bousso and Stephen Jewkes
LONDON/MILAN, May 19 (Reuters) - BP and Eni
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.
Oil and gas production from both portfolios would reach
around 200,000 barrels of oil equivalent per day, BP said in a
statement.
The new company would be expected to generate significant
synergies, create more efficient operations and increase
investment and growth in the basin, the statement said.
It will also be self-funded, it said.
Reuters reported last month that Eni was considering
spinning off oil and gas operations in West Africa and the
Middle East into new joint ventures to help reduce debt and fund
its shift to low-carbon energy.
(Editing by Jane Merriman)
BP (BP.)