LNG

French major TotalEnergies, a shareholder in the Angola LNG export plant, has finalized the sale for $400 million to a unit of Malaysian energy company Petronas of a stake in Block 20 in the Kwanza Basin offshore the Angolan coast.

Chevron Corp., the oil and gas major and leading LNG producer, said the mandatory retirement age for President and Chief Executive Mike Wirth had been waived by the company and he would be staying on as Chevron also provided a preview of likely second-quarter earnings.

Saipem, the Italian energy engineering company working on oil, pipeline gas and LNG projects worldwide, said it was awarded new contracts worth $1 billion for crude and gas in Saudi Arabia and the development of underwater drones in Brazil as a new survey underpinned the long-term viability of oil in the energy mix to help finance cleaner alternatives and technologies.

The LNG carrier “Lobito” with 160,000 cubic metres capacity has just lifted the 400th cargo from the Soyo LNG export plant in Angola that has made the southwest African nation a key global supplier for the past 10 years and an example of how oil and gas and LNG can change lives in developing economies.

The World Bank said progress has been made in the past year in reducing gas flaring in the oil and gas business and points to benefits from associated gas being used for LNG production with a worldwide reduction in flaring of 5 billion cubic metres to 139 Bcm, the lowest level since 2010.

Subsea 7 SA, the Oslo-listed oil and gas field services company, was awarded a large contract by Azule Energy in the framework of the Agogo Integrated West Hub Development Project offshore Angola in southwest Africa.

The contract scope includes the transport and installation of around 98 kilometres of flexible pipes, 30km of umbilicals and associated subsea structures in water depths of around 1,700 metres.

UK major BP and Italian energy company Eni agreed to form the 50-50 joint venture company Azule Energy a year ago in early March 2022 in the LNG-producing African state.

Azule Energy was set up as the new holding entity for the Angolan assets of both BP and Eni.

“Project management and engineering have commenced and will be managed from Subsea 7's offices in Angola, France, UK and Portugal,” said Subsea 7.

Fabrication will take place at the Sonamet yard in Lobito, Angola, and offshore operations are planned between the fourth quarter 2024 and the fourth quarter of 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, Subsea 7 Vice President for Africa, the Middle East and Caspian regions.

Record

Subsea7 noted that it had been working for over 40 years in Angola and has an important track record in-country.

The company also said it defined a “large contract” as being between $300 million and U$500M.

Since its formation Azule has become Angola’s largest producer, holding stakes in 16 licences, as well as participating in the Angola LNG joint venture.

The European energy companies have embarked on giving Azule a strong pipeline of new projects starting up over the next few years, including the new Agogo project awarded to Subsea 7.

Azule is also leading the development of the New Gas Consortium (NGC), the first non-associated gas project in the country, which will support the energy needs of Angola’s growing economy, its decabonization path and strengthen its role as a global LNG player.

Angola is already the second-largest oil producer in Sub-Saharan Africa and uses associated gas to produce LNG sourced at its liquefaction plant, operated by the main shareholder, the US major Chevron Corp.

Eni and BP are also shareholders in Angola LNG along with France’s TotalEnergies and the Angolan state energy company Sonangol.

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 500 kilometres 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.

Saipem, the Italian subsea and drilling company, has been awarded contracts in the LNG-producing nation of Angola for the Azule Energy joint venture and for wells in the Côte d'Ivoire where the West African nation is aiming to boost oil and gas production.

UK major BP and Italian energy company Eni have agreed to form a 50-50 joint venture company in the LNG-producing state of Angola in southwest Africa called Azule Energy.

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.