An international energy consortium has greenlit a US$5.1 billion (AU7.6 billion) offshore oil development in Angola, locking in vital infrastructure contracts to shore up the African nation’s production capacity.
Azule Energy, the independent joint venture equally owned by energy giants Eni and bp, announced the final investment decision (FID) for the Greater PAJ Project.
The development is a major milestone for Angola, representing the country’s first integrated cross-block project, which coordinates hydrocarbon resources across two adjacent deepwater concessions.
Located in the Lower Congo Basin, the ultra-deepwater project will tie together five distinct offshore fields: Palas, Astraea, and Juno in Block 31, alongside Urano and Dione in Block 31/21. Total reserves across the blocks are estimated at 252 million barrels.
Azule Energy, which operates both blocks with a 50 per cent stake alongside partners Equinor and Sonangol E&P, expects the first oil to flow in the first half of 2029.
Azule Energy CEO Joseph Murphy said the project would be instrumental for the country’s economic future.
“Greater PAJ will contribute to sustaining production, creating value for the country and reinforcing Angola’s position as a key energy supplier in the years ahead,” Murphy said.
The development plan features 17 subsea wells connected to a new floating production, storage and offloading (FPSO) vessel.
The facility is designed with a nameplate capacity of 95,000 barrels of oil per day, alongside a gas export capacity of 70 million standard cubic feet per day to be fed into the Angola LNG plant.
Coinciding with the investment decision, Azule signed major engineering contracts to kickstart construction. Italian oilfield services company Saipem secured a US$1 billionr contract for rigid pipelines and subsea facilities, while TechnipFMC was awarded a major deal to supply flexible flowlines and risers. Baker Hughes will also supply specialised technology.
The project aligns with Angola’s aggressive regulatory overhaul aimed at drawing international capital into its mature fields, as the nation fights to maintain its crucial crude oil output of one million barrels a day.
