Field/project development

‘New Wave': Azule Awards $7.8 Billion in Orders for Angolan Deepwater Project

The Agogo Integrated West Hub Development Project is the first new major greenfield project awarded in Angola in more than 5 years.

Source: Getty Images

Azule Energy recently checked several big-ticket items off its shopping list for its Agogo Integrated West Hub project as the BP-Eni joint venture partnership awarded $7.8 billion in contracts.

Multiple contractors secured work on the development project that is set to expand the footprint and increase the production of the Agogo oil field in the West Hub production area in Block 15/06 located about 110 miles offshore Angola.

The project comprises 36 new wells: 21 production wells and 15 injection wells. The work package includes 23 subsea trees, 11 manifolds, hundreds of miles of flowlines and umbilicals, and a converted floating production storage and offloading vessel (FPSO) with a production capacity of 120,000 B/D of oil production, 230 MMscf/D of gas injection, and 120,000 B/D of water injection.

The hub will produce hydrocarbons from the Agogo and Ndungu fields via both the existing FPSO Ngoma and the new FPSO Agogo that will be operational in 2026, reaching a peak of production of 175,000 B/D. The hub will fully utilize existing infrastructure of the western area of the block to optimize the project schedule and associated cost, according to Azule.

“The signing of these contracts marks the start of a new wave of major investment in the deep water of Angola and it will deliver a significant value of activities for the country oil and gas industry. This project will also represent an important contribution towards the increase of the country’s oil production,” said Adriano Mongini, Azule Energy’s chief executive. “The support provided by Angola’s Ministry of Mineral Resources and Petroleum and the National Concessionaire, has been essential in finalizing this new integrated development project.”

Malaysian FPSO provider Yinson was awarded a $5.3 billion contract for the provision, operation, and maintenance of the new FPSO Agogo for a 15-year period, with an option to extend for another 5 years. The FPSO will be Yinson’s first offshore production project in Angola and will be its eighth FPSO project in West Africa, the company said.

Houston-based energy technology company Baker Hughes was awarded a major contract by Azule for the supply of 23 standard subsea trees, 11 Aptara manifolds, SemStar5 fiber-optic controls, and related systems. A significant portion of the equipment for what Baker Hughes called the "first new major greenfield project in Angola in more than 5 years" will be manufactured, assembled, and tested in the country.

Norway’s Aker Solutions secured a sizeable contract to provide the dynamic and static subsea umbilicals. The umbilicals will be manufactured at Aker Solutions´site in Moss, Norway. The work starts up immediately and is planned to be delivered in second quarter of 2024. The company defines a sizeable contract as between NOK 0.5 billion and NOK 1.5 billion.

Additionally the UK’s Subsea7 was selected for the transport and installation of approximately 98 km of flexible pipes, 30 km of umbilicals, and associated subsea structures in water depths of around 1700 m.

UK-based TechnipFMC was awarded a substantial contract to supply the flexible pipe that will connect the Agogo facility to the subsea production system. The contract, which the company said is valued between $250 million and $500 million, covers the engineering, procurement, and supply of jumpers, flowlines, risers, and all associated ancillary equipment.

Italy's Saipem was awarded the contract for the supply rigid flowlines and subsea structure transportation and installation.

Block 15/06 partners are Eni Angola SPA (36.84%, operator), Sonangol P&P (36.84%), and SSI Fifteen Limited (26.32%). Since the first oil in 2014, it has already produced over 300 million bbl from the FPSO Ngoma and FPSO Armada Olombendo.