LNG

Saipem, the Italian energy and LNG engineering company specialising in subsea work, has been awarded three contracts valued at $3.7 billion in the LNG exporting nation of Angola and on behalf of French major TotalEnergies.

The three Saipem awards are in Angola’s Block 20 oil and gas fields for the Kaminho project relating to the development of the Cameia and Golfinho oil fields, located 100 kilometres (62 miles) off the coast of Angola.

The first contract refers to the engineering, procurement, construction, transportation and commissioning of the Kaminho floating production storage and Offloading (FPSO) vessel.

The second contract entails the Operation and Maintenance (O&M) of the same FPSO for a firm period of 12 years with a potential eight-year extension, leveraging on the expertise acquired from three other FPSOs currently operating in Angolan waters.

The third contract involves the engineering, procurement, supply, construction, installation, pre-commissioning and assistance for the commissioning and start-up of a Subsea, umbilicals, risers and flowlines (SURF) package which includes about 30 kilometres of 8-inch and 10-inch subsea flowlines and risers, and umbilicals.

“The associated structures will be fabricated in Saipem’s local yard in Ambriz,” said Milan-based Saipem.

Investment decision

Saipem’s statement followed meetings held on May 20 in Angola by Patrick Pouyanné, the Chairman and Chief Executive of TotalEnergies, to announce a final investment decision for the Kaminho project.

Pouyanné held talks with João Lourenço, the President of Angola, and Diamantino Azevedo, the Minister of Mineral Resources.

Pouyanné also held discussions with Angola’s leading state energy executives including Paulino Jerónimo, Chairman and CEO of the National Agency of Petroleum, Gas and Biofuels (ANPG) and Gaspar Martins, Chairman and CEO of national oil and gas company Sonangol.

TotalEnergies holds 40 percent of the Kaminho project and the other Block 20/11 partners are Malaysia’s Petronas with 40 percent and Sonangol with a 20 percent holding.

The Kaminho project’s Cameia and Golfinho fields are located in water depths of 1,700 metres and the venture is the first large deepwater development in Angola’s Kwanza Basin.

“The first development in the maritime zone of the Kwanza Basin is important to showcase the opening of new oil frontiers in Angola, and it’s part of our strategy to keep Angola on the top of African oil producers, bringing important income to our economy,” stated ANPG’s Jerónimo.

Sonangol’s CEO Martins said that the FID for the Kaminho project shows the commitment and efforts made by the Angolan government as well as the partners TotalEnergies, Sonangol and Petronas.

“The right conditions are now in place to contribute to increasing national production of oil and natural gas, and with that the revenues for the country,” Martins stated.

TechnipFMC, the US oil and gas services company based in Houston, has been awarded a significant contract in Angola by Azule Energy, the joint venture set up by European majors BP and Eni in the Southwest African nation to oversee 16 licences as well as participating in Angola LNG operations.

Liquefied natural gas-producing nation Angola, which has pioneered associated gas use from oil fields to turn into LNG for export, has decided to open up the potential of the southern offshore Kwanza Basin likened in some ways by petroleum engineers to the prolific Santos Basin offshore Brazil.

The TotalEnergies-led Cameia-Golfinho project will be the first deepwater development in the pre-salt Kwanza Basin and is estimated to hold at least 420 million barrels of oil equivalent.

Analysts note that Angola is known to have significant untapped resources as demonstrated by the contrast between its proven and estimated reserves of 9 billion versus 57 billion barrels of oil and 11 trillion versus 27 trillion cubic feet of natural gas.

The pre-salt areas in southern Africa represent frontier acreage with lower exploration risk and higher potential for production.

As part of its efforts to focus on subsea tie-backs, infill drilling and other near-hub projects, French major TotalEnergies is ready for the development of the pre-salt production hub for Blocks 21/09 and 20/11 in the Kwanza Basin.

The company’s Cameia-Golfinho project in Kwanza will be the first deepwater project in the pre-salt area.

FID scheduled

TotalEnergies and Angolan national oil and gas company, Sonangol Exploration & Production, have just signed a heads of agreement with Angola’s energy regulator, the National Oil, Gas and Biofuels Agency (ANPG), related to the development of the Cameia and Golfinho fields in the Kwanza Basin and a final investment decision is expected in 2023.

TotalEnergies said that this future offshore development project in Blocks 20 and 21, located around 150 kilometres (93 miles) southwest of Luanda, will comprise a new floating production, storage and offloading (FPSO) unit, the seventh for TotalEnergies in Angola, connected to a subsea network.

“The design of this new project includes electrical generation from a combined-cycle turbine and a zero-flaring concept, allowing a lower carbon intensity,” said TotalEnergies.

The Chairman of the Board of regulator ANPG, Paulo Jerónimo, said that the accord with the TotalEnergies-Sonangol joint venture should allow the first production in the maritime zone of the Kwanza and may “contribute decisively” to the national production objectives.

“Its potential may generate interest from other operators, including the beginning of other developments on the Kwanza Basin,” Jerónimo explained.

Gaspar Martins, Chairman of the Board at Sonangol, said the company’s main objective is to make the Kwanza project successful.

“For some time now, we have wanted Blocks 20 and 21 to start producing, and we target a final investment decision this year so that the offshore Kwanza Basin soon begins production,” stated Martins.

TotalEnergies is the Blocks 20-21 operator with an 80 percent shareholding while Sonangol owns the remaining 20 percent.

Angolan liquefied natural gas project partners, who are also part of the New Gas Consortium (NGC) in the country, have taken a final investment decision for the development of the Quiluma and Maboqueiro fields in the first non-associated natural gas project undertaken in the southwest African nation.

Eni of Italy has achieved the start-up of the Cabaça North project offshore Angola as the southwest African nation has also just awarded nine onshore licences to 14 companies for blocks in the Congo River basin and a basin further to the south.

Angola, the southwest African LNG producer and holder for 2021 of the current rotating Presidency of the Organisation of Petroleum Exporting Countries (OPEC), has conducted  a successful oil and gas bidding round and on September 23 will name concession winners.