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.

Australian company Melbana Energy, which began production testing in October at its Alameda oil field offshore the north coast of Cuba, has delivered first oil from early production testing and was upbeat on future prospects for the Cuban production sharing contract held by operator Melbana in partnership with Sonangol, the national energy company of African LNG producer Angola.

Italian energy company Eni has upgraded the resources by more than three times in the Ndungu field offshore the LNG-producing nation of Angola and said the move showed how improved technology can alter the profile and economic viability of a discovery.

TotalEnergies has made a significant discovery of light oil with associated natural gas in the Orange Basin offshore the southwest African nation of Namibia, boosting its project possibilities in the region.

UK major BP has reported its highest profit in eight years in the fourth-quarter earnings statement amid volatile forward natural gas prices during 2021 and said it was “performing while transforming” and investing in only “focused” hydrocarbon ventures like a field recently brought on stream in Angola.

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.

May 19 (LNGJ) - UK energy major BP and Italy’s Eni have signed a non-binding memorandum of understanding to progress detailed discussions on combining their upstream portfolios in the southwest African nation of Angola, including all their oil, gas and LNG interests. “The companies believe that combining their efforts in a new joint venture company would bring significant opportunities for them to jointly boost future developments and operations in Angola,” they said.

   Eni and BP have informed the Angolan Government of their intention. “Any final transaction will be subject to relevant governmental, regulatory and partner approvals,” they added. Angola LNG is operated by US major Chevron Corp. and the other shareholders are Angolan energy company Sonangol and France’s Total. The liquefaction plant at the mouth of the Congo River processes 1.1 billion cubic feet of natural gas per day and produces 5.2 million tonnes per annum of LNG from associated gas from crude oil production.

Subsea 7 SA, the European contractor listed on the Norwegian stock exchange, said it was proud to support African oil and gas development after being awarded a lean-gas project contract in the LNG-producing nation of Angola.

Subsea 7 said its “substantial” contract was awarded by Cabinda Gulf Oil Company (CABGOC), a subsidiary of US major Chevron Corp. operator of the LNG plant.

The contract is for the Sanha Lean Gas Connection (SLGC) project comprising the construction and installation of the Lean Gas Platform system in Block-0 offshore the southwest African state at a water depth of around 70 metres.

Project management and engineering would be performed from Subsea 7’s offices in Paris and Lisbon.

Subsea 7 contracts listed as “substantial” are usually worth between $150 million to $300M.

Fabrication will take place at Sonamet’s yard in Lobito, Angola, from 2021 to 2022, while offshore operations will occur from 2022 and 2023.

“We are delighted to have been awarded this contract by CABGOC, following a public tender,” said Gilles Lafaye, the Subsea 7 Senior Vice President for Africa, the Middle East and Caspian Region.

“This is the result of a long-term collaboration with the client and a track record of delivering successful projects,” added Lafaye.

“The project reinforces Subsea 7’s presence in Angola and our commitment to support Africa’s energy industry,” he stated.

Angola has taken up the rotating presidency of the Organisation of Petroleum Exporting Countries and will chair OPEC meetings during 2021 at a time of change and challenges in the industry.

Angola is the second-largest oil producer in Sub-Saharan Africa and uses associated gas to produce LNG as a clean energy source at its liquefaction plant.

The other shareholders in addition to Chevron and Angolan energy company Sonangol are BP of the UK, Eni of Italy and France’s Total.

The Angola LNG plant is located 350 kilometres north of the capital Luanda in Soyo, at the mouth of the Congo River and is one of the world’s most modern LNG processing facilities.

A pipeline network of over 500km delivers gas from offshore oil fields to the Soyo plant designed to process 1.1 billion cubic feet of natural gas per day and produce 5.2 million tonnes per annum of LNG.

The southwest African nation of Angola, a liquefied natural gas exporter to nations such as India and China, has signed an accord with an American company to set up LNG import facilities as part of a gas-to-power project.

Angola LNG, the troubled liquefaction plant in southwest Africa operated by Chevron Corp., has formally re-launched after a two-year shutdown with the arrival of a cargo in Brazil.