Our work in Angola

Eni worldwide Africa

Azule Energy, a new international energy company by Eni and bp

In March 2022 bp and Eni signed an agreement to form a new 50/50 independent company, Azule Energy through the combination of the two companies’ Angolan businesses. The agreement follows the memorandum of understanding between the companies agreed in May 2021. Azule Energy will be a new international energy company, independently managed, with more than 200,000 barrels equivalent a day (boe/d) of net oil and gas production and 2 billion barrels equivalent of net resources. It is expected to be Angola’s largest producer, holding stakes in 16 licences, as well as participating in the Angola LNG joint venture. Azule Energy will also take over Eni’s stake in Solenova, a solar company jointly held with Sonangol. Azule Energy will have a strong pipeline of new projects starting up over the next few years, including the new Agogo and PAJ oil projects in Blocks 15/06 and 31 respectively. It will also develop the New Gas Consortium (NGC), the first non-associated gas project in the country, which will support the energy needs of Angola’s growing economy, its decarbonization path and strengthen its role as a global LNG player.

33 mm bbl

Annual oil and condensate production

20 bcf

Annual gas production

37 mm boe

Annual hydrocarbon production

Activities mainly offshore

Our work in Angola is concentrated in conventional and deep offshore, with a total developed and undeveloped area of 21,441 square kilometres. Our main asset in the country is Block 15/06 (Eni 36.84%, operator) with the West Hub and East Hub.

In April 2021 we made a new light oil discovery in Block 15/06, in Angola’s deep offshore. The well has been drilled on the Cuica exploration prospect located inside the Cabaça Development Area and close to the Armada Olombendo FPSO (East Hub). The discovery is based on the ILX_Infrastructure-led exploration strategy, which pursue exploration opportunities in proximity of existing infrastructures. We started production from the Cuica field via the Armada Olombendo FPSO vessel in July 2021, just over 4 month from discovery.

In September 2021 we started production from Cabaça North, via the Armada Olombendo FPSO and through our Infrastructure-Led Exploration strategy. The Cabaça North development, with an expected peak production rate in the range of 15 kbopd, will increase and sustain the plateau of the vessel, a zero-discharge, zero-process flaring FPSO with an overall capacity of 100 kbopd. This is the second start-up achieved by Eni Angola in 2021, after the Cuica Early Production achieved in July. A third start-up is started in February 2022, with the Ndungu Early Production in the Western area of Block 15/06. The start-up of Ndungu EP is yet another example of how Eni Angola keeps creating value on Block 15/06 through its Infrastructure-Led Exploration strategy. Ndungu EP project, with an expected production rate in the range of 20,000 barrels of oil per day (bopd) will sustain the plateau of the Ngoma.

Other development activities in the operated Block 15/06 in 2021 concerned the Agogo Early Production Phase 2 development project with start-up of construction activities relating to the planned offshore facilities. The full field development of the Agogo project provides for the construction of an additional FPSO. Concept definition studies and FEED activity were completed and started up the activities for the assigning main contracts. On the non-operated blocks, development activities progressed in the Block 0. Other development activities concerned the FEED activity of the Punja project in the Block 3/05-A (Eni’s interest 12%).

The LNG business in Angola

Eni holds a 13.6% interest of the Angola LNG (A-LNG) which runs the plant, located in Soyo, with treatment capacity of approximately 353 bcf a year of feed gas and a liquefaction capacity of 5.2 mmtonnes a year of LNG. In 2020 production net to Eni averaged approximately 23 kboe a day.

Chemicals in the country

Versalis International manages the activities of the commercial branche in Angola.

The progress of our activities and new areas of cooperation

In April 2021 the President of the Republic of Angola João Gonçalves Lourenço and the CEO of Eni Claudio Descalzi met in Luanda to review the progress of Eni’s activities in the country and to discuss new areas of cooperation. We presented the recent successes of Eni’s exploration strategy in Angola, as well as the progress of renewable and downstream initiatives. Through Solenova JV (Sonangol 50%, Eni 50%), in December 2021 we reached the Final Investment Decision (FID) and the signing of the Engineering, Procurement and Construction (EPC) contract for the first phase of the Caraculo photovoltaic project, located in the Namibe province. The plant, with a total capacity of 50 MWp, will be an important source of electrical power from a renewable resource and will allow the reduction of diesel consumption for electricity generation, thus reducing the emission of greenhouse gases (GHG) and contributing to Angola’s energy transition. In addition to the positive impact on the environment, the project will also contribute to the sustainable development of communities in the surrounding areas. Start-up is expected in the fourth quarter of 2022.

As for downstream, we renewed our commitment on the Luanda Refinery where the operational efficiency of the asset has improved significantly in the last three years.

Over 100 Angolan technicians have been involved on specific training programs in Italy and Angola, and the project to increase gasoline production capacity, allowing the country to reduce its reliance on import of finished products, is under construction with start-up expected in 2022. Through the New Gas Consortium we will develop and monetize non-associated gas fields, enhancing Angola’s ability to produce LNG and availability of domestic gas for the country’s industrial development. Furthermore, the progress of our local development initiatives was discussed, which focus on agricultural development, access to water, energy, education and health, as well as demining initiatives, access to land and diversity and inclusion.

In October 2021, through Eni Angola, we signed a Memorandum of Understanding (MoU) with ANPG and Sonangol for the joint development of the agro-biofuel sector in the country. Under the MoU, we will develop a de-carbonization path for the Republic of Angola through a circular economy approach, assessing in particular the development of low-ILUC (indirect land‐use change) cultivations such as castor beans on degraded lands and cover crops in rotation with cereals. As part of the MoU, we will also evaluate business opportunities in the areas of waste-collection, with the purpose of valorizing the organic fraction and bio-refining. The MoU is in line with Eni’s commitment to accelerate the energy transition in fossil-fuel producing countries, promoting the integration of the African continent into the biofuel value chain through agribusiness and industrial development initiatives aimed at the production of advanced biofuels.

Respect for human rights in Angola

In 2018, Eni Angola commissioned the Danish Institute for Human Rights (DIHR), an independent body funded by the Danish state, to conduct a Human Rights Assessment (HRA) in relation to the exploration activity in the Cabinda Nord block. The report from the assessment includes the main observations and recommendations that emerged from the study, along with interviews from representatives from Eni Angola and external stakeholders. The document identified several focus points, including security management, respect for human rights in the workplace and in trade relations.

In June 2020 we published an update of Eni for Human Rights, the company’s report that provides information on its commitment to the respect for human rights, showing a strengthening of its internal procedures on this fundamental matter. The report builds on the work undertaken by Eni over the past 6 years in the countries in which we operate.

We create energy

In Angola we are developing our "East Hub" and "West Hub" Upstream projects and numerous initiatives on access to water resources and health promotion in local communities. We aim to improve energy efficiency in our work, but also to have a positive impact on places. Local development programs and initiatives progressed during 2021 in particular with the South West integrated project in Huila and Namibe area, to support local communities affected by drought; access to energy, with health centers electrification by means of solar panels installation; an agricultural development program in the Cabinda area in partnership with local institutions; ongoing support of the Halo Trust initiative for the f land demining in the Benguela province; and several health initiatives in the Luanda, Cabinda and Zaire areas with healthcare staff training programs as well as medical equipment supplies.

Innovation at East and West Hub

The East Hub and West Hub projects have allowed us to deliver some of our most important successes in exploration and production, thanks to major investments in technology and close cooperation with the host country.

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190 kbbl/g

production in Block 15/06

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With HALO Trust for mine clearance

Since 2017 we have been supporting the project "100 women in demining", which sees Angolan women clear land of mines and gain independence.

100 women in demining

85,000 m²

land reclaimed and restored to the community

100 women in demining

Ensure healthy lives and promote well-being for all at all ages

Achieve gender equality and empower all women and girls

Promote inclusive and sustainable economic growth, employment and decent work for all

Sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity loss

Revitalize the global partnership for sustainable development

The social project facilitates access to water

We aim to improve the living conditions of local communities. That's why, starting in September 2017, we’ve installed eight 5 KW solar power plants in schools and medical centres, as well as drilling eight water wells and launching health and vaccination campaigns. We have also created 16 agricultural cooperatives and trained 400 farmers.

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60,000

project beneficiaries

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Clean Water and Sanitation: Ensure availability and sustainable management of water and sanitation for all

Promoting schooling

Since 2016, we have launched three education initiatives in the provinces of Luanda, Huila, Namibe and Cabinda. The objectives include increasing students' reading ability, improving living conditions in the school communities by installing health and water systems, and renovating the Beira Nova school in Cabinda.

More about the project

41

thousand students have benefitted in Luanda

More about the project

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Kilamba Kiaxi and promoting health

2 million inhabitants in the community Kilamba Kiaxi is one of the nine municipalities of the city of Luanda, the capital of Angola. It was here between 2009 and 2012 that we set out to reduce the rate of preventable diseases and those due to malnourishment by bringing in better health services.

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2 million

inhabitants in the community

Discover Kilamba Kiaxi

Good Health and Well-being: Ensure healthy lives and promote well-being for all at all ages

Eni at the Biennale of Luanda 2021

Organised in partnership between UNESCO, the Government of Angola and the African Union, the Biennale of Luanda aims to promote the prevention of violence and the resolution of conflicts, by encouraging cultural exchanges in Africa, dialogue between generations and the promotion of gender equality. The 2021 edition of the Pan-African Forum develops the theme "Arts, Culture And Heritage: Levers for Building the Africa We Want”, with a rich programme of events scheduled from 27 November to 2 December, in which we are taking part as a private sector sponsor. As a space for reflection and dissemination of artistic works, ideas and best practices related to the culture of peace, the Biennale of Luanda brings together representatives of governments, civil society, the artistic and scientific community, and international organizations.

Teacher training as a basis for local development

In the province of Huila, just as in other provinces in Angola, the majority of primary schools in rural areas are staffed by teachers who lack any specific teacher training. At the end of 2019, we launched an initiative aimed at addressing this very need by delivering professional development content for over 550 teachers working in rural primary schools and 11 trainers. We contributed to improving the quality of primary education through a series of forty educational sessions, combined with hours’ worth of content designed to raise awareness of and prevent Covid-19 and the provision of equipment and school supplies. Over the course of the sessions, participants learned how to prepare lessons and organise simple tests with the children to check their learning progress and were trained in how to organise a large class while at the same time ensuring that each child received the attention they required.

Eni’s international health cooperation project

The initiative, promoted by Eni in collaboration with Angola’s Health Ministry, has kicked-off in Divina Providencia hospital Luanda with training sessions for sixteen doctors. These training sessions include telemedicine and hands-on training carried out by specialist doctors, with the aim to enhance the specialist skills of Angolan doctors. The training activities are part of a broader initiative launched in 2019 and aimed at providing capacity building and training to Angolan doctors by means of a twinning program with Italian reference health institutions. Areas of intervention include Cardiac Surgery, Pediatric Nephrology and Dialysis, Pediatric Hematology, Pediatric Neurology, Mother and Child Health, Infectious Diseases, Epidemiology, Nutrition and referral system at primary healthcare care level. The project is based on a 5m$ investment. Within the framework of this International health project, activities are also going to take place in Cabinda, in parallel with other health development initiatives that are part of Eni’s Local Development Plan.