US$7.8Bn contracts awarded for Angolan deepwater oil project

For this project, Yinson will supply the floating production storage and offloading (FPSO) unit Yinson Azalea, due to arrive in Angola in 2025, and onward field operations and maintenance services.

Baker Hughes will supply the subsea production system and provide aftermarket services and Saipem will supply around 100 km of rigid flowlines and transport and install the subsea structures.

Aker Solutions, Subsea 7 and TechnipFMC have secured contracts to supply and install the rest of the subsea infrastructure in deep waters off Angola in 2024 and 2025.

Subsea 7 won a contract to transport and install around 98 km of flexible pipes, 30 km of umbilicals and associated subsea structures in water depths of around 1.7 km. Project management and engineering have already commenced, and the flowlines will be fabricated in the Sonamet yard in Lobito, Angola. These lines and structures are scheduled to be installed between Q4 2024 and Q4 2025.

Subsea 7 said this is a large contract, which it defines as being between US$300M and US$500M.

TechnipFMC gained the contract for the engineering, procurement and supply of jumpers, flowlines, risers and all associated ancillary equipment for the Agogo project. This is one of the largest ever awards for flexible pipe for TechnipFMC in Africa, described as a substantial contract of between US$250M and US$500M.

For this project, Aker Solutions will engineer, manufacture and deliver a complete umbilical system, totalling about 36 km of both dynamic and static subsea production-control umbilicals, including spares, ancillary equipment and services.

It said work has started and umbilicals will be manufactured at its site in Moss, Norway, with deliveries scheduled for Q2 2024. Aker Solutions said this is a sizeable contract of between Nkr500M (US$48M) and Nkr1.5Bn (US$145M).

The Agogo Integrated West Hub project comprises 36 new wells, including 21 producers and 15 injectors linked to a converted FPSO with capacity for 120,000 barrels per day (b/d) of oil production and injection of associated gas and 120,000 b/d of water injection.

The Ndungu field will be tied into the existing Ngoma FPSO in Angola. The Agogo FPSO should be operational from mid-2026, reaching peak production of 175,000 b/d.

“The signing of these contracts marks the start of a new wave of major investment in the deep water of Angola,” said Azule Energy chief executive Adriano Mongini.

“It will deliver a significant value for the country’s oil and gas industry. This project will also represent an important contribution towards the increase of Angola’s oil production.”

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