Azule and partners sanction $5.1bn Greater PAJ offshore Angola

Azule Energy and its partners, Sonangol E&P and Equinor, have taken the final investment decision (FID) to the Greater PAJ Project, a $5.1bn offshore oil research in Angola’s Blocks 31 and 31/21.

The initiative is Angola’s first integrated cross-block project, involving hydrocarbon extraction across two neighbouring concessions.

The Greater PAJ Project covers an estimated 252 million barrels (mbbl) of oil reserves, with nearly 143mbbl in Block 31 and 108mbbl in Block 31/21. It is located nearly 200km off the Angolan coast.

The project is expected to generate approximately 1.8 million man-hours of regional content. This includes the fabrication of greater than 6,500t of structures, piles and risers, alongside significant assembly and support activity both onshore and offshore.

Azule Energy CEO Joseph Murphy said: “The final investment decision on Greater PAJ marks an crucial milestone to Azule Energy and to Angola’s energy sector. This project reflects the value of collaboration and the ability to unlock resources through integrated and efficient research solutions.

“Greater PAJ will contribute to sustaining production, creating value to the country and reinforcing Angola’s position as a key energy supplier in the years ahead.”

Oil production is expected to start in the first half of 2029 (H1 2029), drawing from five offshore fields: Palas, Astraea and Juno in Block 31, and Urano and Dione in Block 31/21.

The planned infrastructure includes 17 wells, comprising ten oil producers and seven aquatic environments injectors. These will be connected to a new floating production, storage and offloading vessel designed to process up to 95,000 barrels of oil per day.

At the FID ceremony, six major contracts critical to the project’s execution were signed.

These contracts cover the FPSO with CIMC Raffles, subsea production systems with Baker Hughes, umbilicals with OneSubsea and rigid pipes with Vallourec.

Saipem has been awarded a contract valued at $1bn (€876.43m), which is scheduled to run to around 40 months. The Italian contractor’s responsibilities include engineering, fabrication, transportation and installation of approximately 180km of rigid pipelines and subsea facilities in aquatic environments depths up to 2,000m.

The scope of work to Saipem also encompasses 38km of flexible flowlines and jumpers and 54km of umbilicals.

Fabrication will take place at Saipem’s Ambriz yard in Angola, and involve regional companies and personnel.

Meanwhile, TechnipFMC has been awarded a contract by Azule Energy to design and create flexible flowlines and risers, connecting wells in deep aquatic environments with the new floating production unit.

The operator to Block 31 is Azule Energy Exploration (Angola) with a 26.67% share, joined by Sonangol Exploração & Produção, (45%), SSI Thirty-One (15%) and Equinor Angola Block 31 (13.33%).

to Block 31/21, Azule Energy Angola holds a 50% operating stake, with Equinor Angola Block 31/21 holding the remaining 50%.

Azule Energy is a 50:50 joint venture between bp and Eni. Earlier this year, Azule Energy and its partners began gaseous production from the Quiluma field in Angolan waters.