Azule Energy recently signed two underwater contracts, with Saipem and TechnipFMC winning the rigid pipeline and flexible streamline projects respectively, with a total amount exceeding 1.2 billion US dollars. Just the day before, the Greater PAJ project had just reached its final investment decision, and this $5.1 billion cross block deepwater development project has officially moved from paper to sea.

The project is located in Block 31 and 31/21 off the coast of Angola, about 200 kilometers away from the coast, with a water depth of 1200 to 2000 meters. It integrates five oil fields: Palas, Astraea Central, Juno, Urano, and Dione, with a total proven reserve of approximately 252 million barrels. Azule Energy, the operator, is jointly owned by Eni from Italy and BP from the UK, with Sonangol E&P from Angola and Equinor from Norway also participating.

Saipem received the largest order, about 1 billion US dollars. The construction period is 40 months, covering the design, manufacturing, and offshore installation of approximately 180 kilometers of rigid pipelines, 38 kilometers of flexible streamlines, and 54 kilometers of umbilical cables, with a maximum operating depth of 2000 meters. Two construction vessels, FDS and Castorone, will perform offshore operations. The Ambriz base in Angola is responsible for prefabrication, which is expected to create 1.8 million man hours of local work. TechnipFMC's contract value ranges from 75 million to 250 million US dollars, focusing on flexible flowline pipes and deepwater risers from wellhead to FPSO.

Deepsea division of labor is more detailed

One detail worth paying attention to: the flexible pipe contract is separated from the overall subsea engineering package and awarded separately. Rigid pipelines are used for long-distance trunk transportation, while flexible pipelines are responsible for the last kilometer from the wellhead to the floating device, with each contractor focusing on their respective advantages. The practice of splitting and awarding contracts is becoming increasingly common in deepwater projects, driven by the ultimate pursuit of professional division of labor and efficiency by the project team.

The project plans to start oil production in the first half of 2029, with less than three years from FID to oil production, and the deepwater development cycle is still being compressed. The crude oil produced is processed by a newly built FPSO with a daily processing capacity of 95000 barrels, while the associated gas is connected to the existing export network through a dedicated pipeline and ultimately sent to the LNG receiving station in Angola.

Angola bets on deepwater

The declining pressure of mature oil fields in Angola has always existed. Whether new projects like Greater PAJ can be put into operation on schedule directly affects the stability of national oil production. Azule Energy CEO Joseph Murphy spoke directly at the FID ceremony: This project will help maintain Angola's oil production and consolidate its position as a major energy supplier. Keywords: oil pipelines, petrochemicals, deepwater engineering

Eni has been operating in Angola since 1980 and currently produces approximately 115000 barrels of oil equivalent per day through Azule Energy's equity. Once Greater PAJ goes live, it will become another production trump card for this veteran operator in Angola.Editor/Cheng Liting