British oil and gas group British Petroleum (BP) is in talks with Eni to sell its assets in Algeria, sources familiar with the matter reported on Wednesday (June 2nd). According to Reuters, the British major simply intends to get rid of its Algerian assets, but does not rule out participating in other assets of the Italian group in other countries.
This decision is part of the reduction of the oil and gas portfolios of the main European energy companies. They want to keep only those assets that are most likely to be profitable and redeploy capital for a clean energy transition.
Meanwhile, the two companies have also considered the idea of creating a joint venture in the North African country similar to the Angolan model.
BP and ENI have not commented on this sale transaction. But if this transaction goes through, BP will sell its 45.89% stake in the In Amenas natural gas plant, as well as its 33% stake in the In Salah gas plant.
As a reminder, BP’s net share of production in Algeria in 2020 was 141 million cubic feet (mcf) of gas per day and 6,000 barrels of oil per day, according to its annual report. For its part, Eni, with long-term gas import contracts in the country, produced 81,000 barrels of oil equivalent per day in 2020, including 152.5 mcf of gas.