Azule Energy, the joint venture of Eni and BP, is finalizing a landmark contract for a major new floating production, storage, and offloading (FPSO) vessel for the Palas-Astrea-Juno (PAJ) complex in Angola's Block 31. This development is a critical step in Angola's strategy to revitalize its offshore oil industry and reverse production declines.

Contract and Project Details

The contract, expected to be awarded in December, is a turnkey engineering, procurement, and construction (EPC) agreement with China's CIMC Raffles. The newbuild FPSO is scheduled for delivery in 2028 and will be designed to process up to 130,000 barrels of oil per day and store 1 million barrels. CIMC Raffles, already involved in early engineering, is responsible for building and integrating both the hull and topsides. The final investment decision for the PAJ complex is anticipated for late 2025 or early 2026.

Historical Context of the PAJ Complex

The PAJ complex, discovered in 2005, has a history of delays. Initially planned by BP as a 34-well subsea development tied to an FPSO, the project was shelved due to high costs. A revised plan incorporating additional discoveries was subsequently derailed by the 2014 oil price crash. The formation of Azule Energy in 2022 ended speculation about BP's exit from Angola and revived the project. While Azule had previously engaged Malaysia's Yinson for an FPSO, that agreement lapsed, reopening the competition that CIMC Raffles is now set to win.

Field and Partnership Information

The PAJ fields are located in water depths of about 2000 meters and are expected to be developed via approximately 16 wells. The ownership structure of Block 31 is as follows:

• Azule Energy: 26.67%
• Sonangol (state-owned): 45%
• SSI Fifteen (Angola-Chinese JV): 15%
• Equinor: 13.33%