Azule Energy has handed out $7.8 billion of contracts for its new Agogo project, offshore Angola in Block 15/06.
Yinson Holdings has signed on to provide a FPSO for the Agogo field, in Angola’s Block 15/06. The contract is worth $5.3 billion, Yinson said.
Aker Solutions has also agreed to provide umbilicals. Baker Hughes has also been part of the contract frenzy, announcing a major subsea award for Agogo. Saipem will provide rigid flowlines and subsea structure transportation.
Subsea 7 will provide flowlines and and risers, while TechnipFMC will also handle risers and flowlines.
Agogo will incliude 36 new wells, of which 21 will be producers and 15 injectors. The FPSO will have capacity for 120,000 barrels per day of oil production, in addition to 230 million cubic feet per day of gas injection.
The plan covers around 100 km of rigid flowlines, 100 km of flexible flowlines and 100 km of umbilicals.
The Agogo Integrated West Hub will pool hydrocarbons from the Agogo and Ndungu fields. This will use both the existing Ngoma FPSO and the new Agogo FPSO, Azule reported.
As a result, total production will peak at 175,000 bpd.
Yinson said its Yinson Azalea Production and Yinson Azalea Operações Angola – Prestação de Serviços had both signed on to the FPSO work.
Azule Energy CEO Adriano Mongini said the contract was a “key milestone” for the company.
“Agogo marks the start of a new wave of major investments in Angola’s deepwater oil production. With the right partnerships, we trust that this project will be delivered in a safe and efficient manner bringing significant value of activities for the country’s oil and gas industry”.
The contract is worth $5.3 billion to Yinson, it said, including the optional extension.
The charter will run for around 15 years, it said, with an option for another five year extension.
The FPSO should be ready in the fourth quarter of 2025. This will be Yinson’s first FPSO in Angola.
Lim Chern Yuan, group CEO of Yinson, said the awarded demonstrated the company’s position as a “reliable FPSO contractor and responsible local operator”.
Yinson Production CEO Flemming Grønnegaard described Africa as a “vital market” for the company. “The team has gained valuable experience and skills in the region and we are ready to demonstrate once again our capabilities to deliver a world-class FPSO. We are committed to delivering value-added results for our client, whilst implementing a low emission design that helps to mitigate climate change.”
Meanwhile, Aker Solutions will provide umbilicals to the Agogo field.
Aker defined the win as “sizeable”, which it sees as worth 500 million to 1.5 billion krone ($48-145 million). Azule Energy awarded the dynamic and static subsea umbilicals work to Aker for Agogo.
The service company explained the contract covered engineering, manufacturing and delivery of a complete umbilical system. This will run for 36 km, it said, covering both dynamic and static subsea production control umbilicals.
It will manufacture the umbilicals at its Moss site, in Norway. It will begin work immediately and aim to deliver in the second quarter of 2024.
“We are very pleased to have been awarded another important contract by Eni in Angola. We look forward to continuing our strong relationship by maintaining our focus on safe and efficient operations,” said Maria Peralta, executive vice president and head of Aker Solutions’ subsea business.
Subsea 7 said it would provide 98 km of flexible pipes and 30 km of umbilicals. It has begun engineering and will carry out fabrication at its local Sonamet yard, in Lobito.
The company will move into offshore installation in the fourth quarter of 2024, running through to the end of 2025.
TechnipFMC said its contract to provide flexible pipe to Agogo was “substantial”, which it defines as worth $250-500 million. It is one of the company’s largest ever awards for flexible pipe in West Africa.
Jonathan Landes, president of subsea at TechnipFMC, said the win was “another example of our unique capability to support fast-track greenfield developments, and we are excited to be supporting Azule Energy and its partners on this project.”
Baker Hughes also reported a major contract to provide subsea equipment to the Agogo field today. The service company did not disclose the value of the award, but did say it was the first such major award in Angola for more than five years.
Azule has contracted 23 standard subsea trees, 11 Aptara manifolds, SemStar5 fibre optic controls and related supplies. Baker Hughes said it would also provide services and after market support.
“Our local manufacturing capabilities, deepwater development equipment and innovative subsea control system technology enable us to provide exceptional support to Azule Energy in their efforts to increase oil production in Angola,” said Maria Claudia Borras, executive vice president of oilfield services and equipment at Baker Hughes.
Eni and BP combined their Angola operations in August 2022, becoming the largest independent oil and gas producer in the country.
Eni is the operator of Block 15/06 with a 36.84% stake, while Sonangol P&P has a similar equity position. SSI Fifteen has 26.32%. The block has produced more than 300 million barrels of oil from its two FPSOs already in place since 2014.
Updated at 3:21 pm with Baker Hughes announcement.
Updated March 1, at 2:28 pm with Azule confirmation and additional awards.