Eni and Sonangol pooling resources to step up their decarbonisation game
Italy’s energy giant Eni and Angola’s state-controlled oil and gas company Sonangol have joined forces to identify and assess opportunities in the areas of the energy transition, including agro-industrial supply chains for the production of low-carbon fuels, valorization of residual biomass and green ammonia for agro-industrial applications.
To this end, Eni’s CEO, Claudio Descalzi, and Sonangol’s Chairman of the board of directors, Sebastião Pai Querido Gaspar Martins, have signed a Memorandum of Understanding (MOU) in Rome to further expand the scope of the cooperation between the two companies by developing studies in the agribusiness value chain and in other sectors of decarbonisation, including energy transition minerals and innovation ecosystem.
Under the terms of the deal, signed in the presence of Angola’s president, João Lourenço, and Italy’s Prime Minister, Giorgia Meloni, Eni and Sonangol will evaluate agribusiness opportunities, with studies to promote synergies between national agricultural food and bio-energies value chains with a focus on improved seeds and biotechnologies, mechanisation, fertilizers and logistics services.
The two players may also cooperate in energy transition minerals, such as those used in the production of batteries and renewable energies, and the innovation ecosystem. This entails capacity building, assessment, and development of innovative technologies and digital solutions in the fields of energy transition and agribusiness through the support of the environment of start-ups and small and medium enterprises (SMEs).
The Italian oil major explains that the MoU builds on the good progress of the previous one signed with Sonangol and Agência Nacional de Petróleo, Gás e Biocombustíveis de Angola (ANPG) in October 2021 to find cooperation opportunities in Angola regarding bio-feedstock and circular economy.
Furthermore, the MoU is not only in line with Sonangol’s decarbonisation vision to invest and implement energy projects derived from cleaner sources but also with Eni’s strategy to play a pivotal role in the overall decarbonisation process, including by promoting a greater recourse to renewable energy sources and other low carbon energy vectors and technologies in compliance with the provisions of the Paris Agreement.
Deals like the one with Sonangol enable Eni to continue pursuing its decarbonisation pathway while addressing energy security concerns. In a bid to expand its gas market exposure, the firm inked an agreement with NOC in January 2023 to develop the A&E Structures.
The Italian giant’s adjusted operating profit before tax of €5 billion ($5.53 billion) in 1Q 2023 was only 5 per cent lower than in 1Q 2022 despite a 20 per cent fall in crude oil price and a 42 per cent drop in gas price.