Azule Energy, the joint venture formed in March 2022 by Italy’s Eni and the UK’s BP to merge their oil assets in Angola, successfully finances its operations independently and pays dividends to its shareholders.
Vaar, an oil and gas company established in Norway with investment fund Hitec Vision, and Azule Energy operate with minimal dependence on their parent companies.
According to Eni’s CFO Francesco Gattei, both companies fund their capital expenditures and maintain their own debt, which is not consolidated on the parent company’s balance sheet. Additionally, both companies distribute dividends.
Gattei’s statements come amid Eni’s broader strategy to divest stakes in high-potential oil and gas projects in regions like Indonesia and Côte d’Ivoire. This move aims to finance development while reallocating capital towards low-carbon initiatives.
In March, Eni announced plans to raise approximately $4.31 billion by listing or selling shares in its low-carbon assets and an additional $4 billion from its oil and gas exploration and production units over the 2024-2027 period.
These efforts are part of CEO Claudio Descalzi’s strategy to separate some of Eni’s operations into distinct entities to attract investment and generate funds.
Eni has already created and listed Vaar and Azule Energy. However, it continues to manage the debt and fund most capital expenditures for its renewables company, Plenitude, which is valued at 10 billion euros but carries debts ten times its projected profits for 2024.
