Azule Energy gives final go-ahead to $5.1 billion Angola offshore project

Azule Energy, a joint venture between BP and Eni, has approved a $5.1 billion offshore oil project in Angola, marking the country's first integrated cross-block development.

Azule Energy, a joint venture between BP and Eni, and its partners have approved the $5.1 billion Greater PAJ ‌offshore oil project in Angola, company and government officials said at a signing ceremony on Monday.

Partners in the project, Angola's first integrated cross-block development, include Norway's Equinor, Angola's oil and gas agency ANPG and state-owned firm Sonangol. The development is ‌operated by Azule. The investment marks the latest expansion by Azule, Angola's largest independent oil and gas producer, ‌following the recent start-up of its Agogo floating production, storage and offloading vessel (FPSO) and the New Gas Consortium project.

The deepwater Greater PAJ development in the Lower Congo Basin will use a new FPSO and tie together existing production in Block 31 with nearby discoveries ⁠in Block ​31/21. Total oil reserves in ⁠both blocks associated with the development are estimated at 252 million barrels, with first oil expected in the first half of 2029, a ⁠press statement celebrating the FID said.

ANGOLA PUSHING TO MAINTAIN CRUDE OUTPUT Azule, the operator of both blocks, signed a production-sharing agreement ​for Block 31/21 in 2023 and holds a 50% stake alongside Equinor.

"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," Joseph Murphy, CEO of Azule ⁠Energy, ​said in a statement. A major African oil producer, Angola has overhauled its regulatory regime to attract new investment into its mature and marginal fields as it tries to maintain crude oil output of 1 million ⁠barrels a day.

In September, Eni's chief operating officer told Reuters that Azule planned to invest another $5 billion into ⁠Angola's oil and gas sector ⁠over the next few years. Contracts with various specialised engineering and technology companies selected for the energy project were also signed on Monday, including with Baker Hughes, Saipem and ‌TechnipFMC.