Contracts signed to develop Angola’s Agogo field

LUANDA, February 28, 2023 – Yinson Production and Subsea 7 have entered agreements with Azule Energy to develop the offshore Agogo Integrated West Hub Development project in Angola, the energy infrastructure and technology companies announced on Tuesday.

Yinson Production is to provide, operate and maintain the field’s associated FPSO for around USD 5.3 billion. The 15-year contract has an extension option for an additional five years.

The vessel is expected to begin operations in Q4 2025.

Agogo FPSO is the Malaysian engineering entity’s first offshore project in Angola and its eighth FPSO in the West African region.

The signed contract follows a preliminary agreement for the FPSO in December 2022.

“We have been operating in the African region since 1995, and this is a vital market to us,” said Flemming Grønnegaard, CEO of Yinson Production.

“The team has gained valuable experience and skills in the region and we are ready to demonstrate once again our capabilities to deliver a world-class FPSO.”

Subsea 7 also signed a contract with Azule Energy for transport and installation of around 98 kilometres of flexible pipes, 30 kilometres of umbilicals and associated subsea structures.

The contract is estimated to be worth between USD 300 million and USD 500 million.

Fabrication activities will take place at Sonamet’s yard in Lobito, Angola. Offshore operations are expected to happen between Q4 2024 and Q4 2025.

“We are pleased to have our first contract with Azule Energy and to continue supporting the development of the Angolan offshore energy industry,” said Franck Louvety, vice-president of African, Middle Eastern and Caspian regions of Subsea 7.

Azule Energy is a 50:50 joint venture created through an agreement between Eni and BP in March 2022.

The entity is Angola’s largest producer.

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