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Angola’s Oil Service Contracts Last Year Totalled €8.5B

Angola’s Oil Service Contracts Last Year Totalled €8.5B

Angola signed five service contracts with international oil companies last year, totalling US$9.4 billion (€8.5 billion), according to figures from Energy Capital & Power.

According to Energy Capital & Power, a leading global investment platform focused on the African energy sector, the five service contracts with the highest value were signed between 2022 and the current year.

The contract with the highest value, $7.8 billion (seven billion euros), was signed in February this year by Azule Energy, the largest independent oil and gas producer in Angola.

The contracts were signed with important infrastructure and energy technology companies in the Oste Agogo Centre Integrated Development Project – one of the biggest ‘upstream’ projects (exploration, drilling and production activities) in Angola, namely Yison, Baker Hughes, Aker Solutions, Saipem, Subsea 7 and TechnipFMC.

The second highest contract, worth US$900 million (818.6 million euros), was signed by Saipem, an Italian multinational oil services company.

According to Energy Capital & Power, the new Angola gas consortium – which includes Azule Energy, state company Sonangol, Chevron and TotalEnergies – awarded Saipem three engineering, acquisition and construction contracts, which are aimed at developing the Quiluma and Maboqueiro fields, located in the Lower Congo Basin, offshore Angola.

“These are one ‘onshore’ and two ‘offshore’ contracts, signed in August 2022, valued at US$900 million, and cover all the engineering, acquisition and construction work, also including connection and assistance in all types of charges for the proper functioning of the Quiluma platform,” the investment platform said in a statement to which Lusa news agency had access.

Sonadrill, a consortium headed by Sonangol and Bermuda-based global drilling solutions company Seadrill, in November last year signed an extension contract worth US$327 million (297.4 million euros) for the operation of the Libongos drillship in Angola, a platform that will be used to drill 12 wells for a daily fee of US$402,500 (366,113 euros) over a 25-month period.

Also Sonadrill has also agreed an extension of the contract to operate its West Gemini vessel – an ultra-deepwater vessel that explores the coast of Angola – worth US$161 million (€146.4 million).

The contract signed in April 2022 is valid for 18 months and will allow the vessel to drill ten additional wells, with options to drill another eight wells.

Finally, TechnipFMC, in addition to the Azule Energy contract, secured a $250 million (€227.3 million) contract with TotalEnergies on engineering services, procurement and supply of flowlines and connectors on the Girassol Life Extension project, located in Block 17.

Energy Capital & Power considers that with the activities of Angola’s energy sector “in frank growth, the emergence of a set of new high-value service contracts is expected, as well as the extension of several that already exist and are under implementation.”

“The country’s main energy event – Angola Oil & Gas Conference and Exhibition 2023 – will boost these businesses, helping to establish relationships between the main players of the energy sector operating in the country with service companies, inaugurating a new era of market growth,” it stresses in the note.


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