Angola Approves $5.1 Billion Greater PAJ Offshore Oil Project to Boost Production and Extend Oil Lifespan
Angola has secured a significant vote of confidence in its oil sector after Azule Energy and its partners approved the US$5.1 billion Greater PAJ offshore development, one of the country’s largest upstream investments in recent years.
The Final Investment Decision (FID), announced in Luanda, paves the way for development across offshore Blocks 31 and 31/21, an area estimated to contain around 252 million barrels of recoverable oil reserves.
The project is led by Azule Energy, the BP–Eni joint venture and Angola’s largest independent oil and gas producer, in partnership with Equinor, Sonangol E&P, and the Angolan National Agency for Petroleum, Gas and Biofuels (ANPG).
The approval comes at a critical time for Angola as it seeks to slow production declines from mature oil fields and maintain its position among Africa’s leading crude exporters. After peak output above 1.8 million barrels per day more than a decade ago, the country has introduced fiscal reforms and revised licensing terms to attract new investment and stabilize production.
Authorities are currently targeting output of around 1 million barrels per day, supported by new offshore developments and gas projects.
Angola’s First Cross-Block Integrated Oil Development
Greater PAJ is being described as Angola’s first integrated cross-block offshore project, combining resources from two neighbouring concessions under a unified development plan.
The approach is designed to reduce costs and improve efficiency by sharing infrastructure rather than duplicating facilities across blocks.
The project will utilize a new floating production, storage and offloading (FPSO) vessel and integrate five offshore fields: Palas, Astraea, and Juno in Block 31, and Urano and Dione in Block 31/21.
It will include 17 wells 10 oil producers and 7 water injectors linked to an FPSO designed to process up to 95,000 barrels of oil per day. First production is expected in the first half of 2029.
Azule Energy CEO Joseph Murphy said the decision marks a key milestone for both the company and Angola’s energy sector.
“The Final Investment Decision on Greater PAJ is an important milestone for Azule Energy and for Angola’s oil industry.
The project will help sustain production, create value for the country, and reinforce Angola’s role as a key energy supplier,” he said.
Expansion of Azule Energy’s Portfolio
The investment forms part of Azule Energy’s broader expansion strategy since its creation in 2022 through the merger of BP’s Angolan operations and Eni Angola.
The company currently accounts for around 20% of Angola’s oil production, with output of approximately 220,000 barrels of oil equivalent per day across 18 licensed blocks.
Greater PAJ follows other major developments, including the Agogo Integrated West Hub and the New Gas Consortium, Angola’s first non-associated gas project.
Azule has previously indicated plans to invest around US$5 billion in Angola’s oil and gas sector over the coming years, reinforcing its long-term commitment to both hydrocarbons and gas development.
Economic Impact and Local Content
Beyond production gains, the project is expected to generate substantial economic benefits in Angola through employment, procurement, and skills development.
Azule estimates that the development will create approximately 1.8 million man-hours of local content work across engineering, fabrication, offshore installation, logistics, and workforce training.
The FID ceremony also included the signing of six major contracts covering the FPSO, subsea systems, risers, flowlines, rigid pipelines, and installation services.
Contracts were awarded to international engineering firms including Baker Hughes, OneSubsea, TechnipFMC, Saipem, Vallourec, and CIMC Raffles.
The Greater PAJ investment ranks among the largest upstream commitments in Angola since the country’s exit from OPEC in 2023, underscoring Luanda’s strategy to attract capital, stabilize output, and extend the productive life of its offshore oil sector.
