Azule Energy Angola B.V. has awarded a contract to Sapura Energy Berhad subsidiaries for offshore transportation and installation services in Angola.
The wholly-owned subsidiaries are Sapura Offshore Sdn. Bhd, Sapura Energy DMCC and Sapura Energy Engineering & Construction, LDA, according to a company announcement from Sapura Energy on the Bursa Malaysia Wednesday.
The contract value is approximately $300 million, or MYR 1.4 billion. The scope of the work, expected to be completed by the fourth quarter of 2026, involves engineering services, transportation, installation, and related activities at the Quiluma and Maboqueiro platforms for the Angola New Gas Consortium (NGC) project, according to the announcement.
According to the company website, the NGC project targets to develop and produce non-associated gas located in the offshore gas fields to supply Angola with liquefied natural gas (LNG), aiming to enhance the nation’s gas export capability. The NGC will be operated by Azule Energy and is an unincorporated joint venture with Sonangol P&P, Chevron, and Total. The non-associated gas of the first phase of the project will come from the Quiluma and Maboqueiro shallow waters field with additional potential related to gas from Blocks 2, 3, and 15/14 areas. Azule Energy expects its first gas production in the second half of 2026 and a peak output of 300 million standard cubic feet per day.
PSA for Block 31/21
In August, Angola’s National Agency of Petroleum, Gas, and Biofuels and Azule Energy, in partnership with Equinor, signed a production sharing agreement (PSA) for Block 31/21. The agreement, which resulted from the 2021/2022 Limited Offshore Licensing Round, is a “significant stride towards advancing exploration in the Lower Congo Basin”, Azule Energy said in an earlier news release.
The block, which will be operated by Azule Energy with a 50 percent participating interest, occupies an area of approximately 1737.5 square miles (4,500 square kilometers) in the deep waters of the basin. It is located 105.6 miles (170 kilometers) from the coastline and has a total of 12 discoveries. The company said there is remaining exploration potential in an area with existing infrastructure from the Block 31 PSVM.
The contract encompasses the drilling of one exploration well during the initial exploration period, which will last five years, the release said. Block 31/21 is the first exploration block entered into by the company since the establishment of the joint venture between BP plc and Eni SpA in August 2022.
“The signature of the PSA for Block 31/21 expands Azule’s operatorship position in this proven and well-known petroleum system where Azule Energy had great exploration success and discovered major oil accumulations in adjacent blocks”, Azule Energy CEO Adriano Mongini said. “Azule Energy is very proud to reinforce its position as a strategic partner of Angola and as the largest independent equity producer of oil and gas in the country”.
Partnership for Decarbonization
Meanwhile, Azule Energy and Angola’s state oil company Sonangol signed a memorandum of understanding (MoU) earlier in the month to drive decarbonization initiatives and promote the use of clean energy.
The key objectives of the MoU include identifying shared interests in the decarbonization space, establishing a robust framework to assess potential collaborations, and exploring opportunities for renewable energy projects such as solar and wind, low-carbon businesses like blue hydrogen, as well as nature-based solutions such as forestry and the promotion of efficient cooking stoves, according to a separate news release from Azule Energy.
“The decarbonization process is part of Azule Energy’s mission, with the aim of strengthening the Angolan energy sector, at the same time as the country works to achieve carbon neutrality and other sustainable development objectives”, Mongini said.
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