Angola signed, last year, five service contracts with international oil companies, which totaled US$9.4 billion, according to data from Energy Capital & Power.
According to the company, a leading global investment platform focused on the African energy sector, the five highest value service contracts were signed between 2022 and the current year.
The contract with the highest value (US$7.8 billion) was signed in February this year by Azule Energy, the largest independent oil and gas producer in Angola, with Sonangol. However, other smaller operators also signed, within a year, contracts estimated at around US$1.6 billion, which totaled the current US$9.4 billion, against the US$7.8 billion disclosed so far with reference to February of this year.
Contracts were signed with major infrastructure and energy technology companies in the Centro Oeste Agogo Integrated Development Project — one of the largest ‘upstream’ projects (exploration, drilling and production activities) in Angola, namely Yison, Baker Hughes , Aker Solutions, Saipem, Subsea 7 and TechnipFMC.
The second highest contract, at 900 million dollars (818.6 million euros), was signed by Saipem, the Italian multinational oil services company.
According to Energy Capital & Power, the new Angolan gas consortium — which includes Azule Energy, the state-owned Sonangol, Chevron and TotalEnergies — has awarded Saipem three engineering, acquisition and construction contracts, with the aim of development of the Quiluma and Maboqueiro fields, located in the Lower Congo Basin, off Angola.
“It is an ‘onshore’ and two ‘offshore’ contracts, signed in August 2022, valued at 900 million dollars, and which cover all the engineering, acquisition and construction work, including the connection and assistance throughout the type of charges for the proper functioning of the Quiluma platform”, says the investment platform, in a note to which the Lusa agency had access.
Sonadrill, a consortium owned by Sonangol and the global drilling solutions company based in Bermuda, Seadrill, closed, in November last year, 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 upon payment of a daily fee of US$402,500 (366,113 euros) over a period of 25 months.
Sonadrill also agreed to an extension of the operating contract for its ship West Gemini — an ultra-deep water vessel that explores the coast of Angola — worth US$161 million (146.4 million euros).
The contract signed in April 2022 is valid for 18 months and will allow the ship to drill ten additional wells, with options to drill another eight wells.
Lastly, TechnipFMC, in addition to the Azule Energy contract, secured a US$250 million contract (227.3 million euros) with TotalEnergies, for engineering services, acquisition and supply of flow lines and connectors in the Girassol project Life Extension, located in Block 17.
Energy Capital & Power considers that with the activities of the energy sector in Angola “in full growth, a set of new high-value service contracts is expected, as well as the extension of several that already exist and that are in Implementation”.
“The main energy event in the country – Angola Oil & Gas Conference and Exhibition 2023 – will boost these businesses, helping to establish relationships between the main players in the energy sector operating in the country with service companies, inaugurating a new era of growth in the market”, emphasizes the note.
