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.
In February, Azule Energy, an independent equity producer of oil and gas in Angola, awarded contracts to the tune of US$7.8bn 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.
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 US$900mn and comprise EPC work including hook-up and commissioning assistance for the Quiluma platform.
November 2022 saw Sonadrill – a joint venture between Sonangol and Bermuda-based global drilling solutions firm, Seadrill – bagging a US$327mn 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 US$402,500 per day over a period of 25 months.
In addition to Azule Energy’s contract, TechnipFMC secured a US$250mn contract with 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.
In April 2022, Sonadrill inked a US$161mn 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 10 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. 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.