While Angola already represents one of the largest oil producers in Africa, the country is targeting heightened exploration and production across both mature and emerging basins in a bid to become a regional energy hub. With an ambitious national oil company (NOC) and a strong slate of regional and international oil companies active in the country, the past 12 months have seen a number of multi-million-dollar contracts awarded to service companies engaged in drilling, logistical support, well construction, maintenance and completion services.
Azule Energy: $7.8 Billion
In February 2023, Azule Energy, the largest independent equity producer of oil and gas in Angola, awarded contracts to the tune of $7.8 billion to several service companies for the development of the Agogo Integrated West Hub Development Project – one of the largest upstream projects in the country. The contracts were awarded to energy infrastructure and technology company, Yinson, for the supply of the FPSO unit and field operations and maintenance services; to oilfield services company Baker Hughes for the supply of the subsea production system and aftermarket services; and to engineering company Aker Solutions for the supply of the umbilical system.
Additionally, contracts were awarded to engineering, procurement and construction company Saipem for the supply of rigid flowlines and subsea structure transportation and installation; to engineering company Subsea 7 for risers, flowlines and subsea structures transportation and installation; and to engineering and technology company TechnipFMC for the supply of risers and flowlines.
Saipem: $900 Million
In August 2022, Angola’s New Gas Consortium – comprising Azule Energy, NOC Sonangol and energy majors Chevron and TotalEnergies – awarded Italian multinational oilfield services company Saipem three engineering, procurement and construction (EPC) contracts for the development of the Quiluma and Maboqueiro fields located in the Lower Congo Basin offshore Angola. The one onshore and two offshore contracts are valued at $900 million and comprise EPC work including hook-up and commissioning assistance for the Quiluma platform.
Sonadrill: $327 Million
November 2022 saw Sonadrill – a joint venture between Sonangol and Bermuda-based global drilling solutions firm, Seadrill – bagging a $327-million extension contract for the provision of the company’s Libongos drillship in Angola. The rig will be used to drill 12 wells at a rate of $402,500 per day over a period of 25 months.
TechnipFMC: $250 Million
In addition to Azule Energy’s contract, TechnipFMC secured a $250-million contract with oil and gas major TotalEnergies for the engineering, procurement and supply of flowlines and connectors for the Girassol Life Extension project located in Block 17. The installation of flexible pipes is expected to extend the lifespan of the Girassol field by bypassing the outdated and rigid pipe bundles that have been in use since before production at the field began in 2021.
Sonadrill: $161 Million
In April 2022, Sonadrill inked a $161-million extension of the company’s West Gemini contract – an ultra-deepwater vessel exploring offshore Angola. With the deal, Sonadrill’s West Gemini drillship will drill an additional ten wells, with options to drill another eight wells. The contract has a term of 18 months and both the contractor and assignment are not publicly known.
As Angola’s E&P activities grow, a suite of high-value service contracts can be expected, along with extensions of existing deals. The country’s premier energy event – Angola Oil&Gas Conference&Exhibition 2023 – will drive these deals, helping to connect E&P players with service companies and usher in a new era of market growth. Keep following Energy Capital&Power’s website and social media channels for more information about the 2023 edition of the event.
Distributed by APO Group on behalf of Energy Capital&Power.