Saipem of Italy Wins USD 350 Million Subsea Engineering Contract in Angola

en.Wedoany.com Reported - On September 14, Saipem announced that it had been awarded a new offshore engineering contract by Azule Energy Angola, valued at approximately USD 350 million, for the West Hub Tails project in Angola. The project is a follow-up expansion of the Agogo Integrated West Hub Development, located approximately 180 kilometers off the coast of Angola, with a maximum water depth of about 1,750 meters. Saipem is responsible for the engineering, fabrication, transportation, and installation of subsea facilities, and the contract is expected to run for approximately two and a half years.

The contract covers approximately 62 kilometers of subsea flowlines, risers, and umbilicals, and the tie-in of the related facilities to the Agogo floating production, storage, and offloading unit (FPSO). Saipem's chain of responsibility extends from engineering design to fabrication, transportation, and offshore installation. Subsea facility fabrication will be carried out at its Ambriz fabrication base in Angola, with the participation of local enterprises and local personnel. The offshore installation phase is planned to deploy two construction vessels, the FDS and the Normand Maximus.

West Hub Tails is not an independent new oilfield, but a follow-up subsea expansion package of the Agogo Integrated West Hub development system. TechnipFMC was awarded the contract in August for the supply of flexible flowlines, risers, and associated equipment for the same project, responsible for the design and manufacture of the relevant flexible pipelines and equipment; this Saipem contract covers a more complete scope of subsea engineering execution and installation. The two companies respectively undertake different scopes of work, including equipment supply and offshore construction.

The Agogo Integrated West Hub project covers the Agogo and Ndungu oilfields and is operated by Azule Energy, with Azule Energy holding 36.84%, Sonangol E&P holding 36.84%, and Sinopec International holding 26.32%. The project reached a final investment decision in February 2023, and the Agogo FPSO achieved first oil in July 2025, approximately 29 months from FID to production. The two oilfields have combined proven reserves of approximately 450 million barrels, with planned peak production of approximately 175,000 to 180,000 barrels per day.

The Agogo FPSO is the core processing facility of this development system. The original development plan included 36 new wells, comprising 21 production wells and 15 injection wells, and was configured with approximately 100 kilometers of rigid flowlines, 100 kilometers of flexible flowlines, and approximately 100 kilometers of umbilicals. The FPSO is designed with a crude oil processing capacity of approximately 120,000 barrels per day, along with a natural gas injection capacity of approximately 230 million standard cubic feet per day and a water injection capacity of approximately 120,000 barrels per day. The additional 62 kilometers of subsea pipelines and cables under West Hub Tails will be further tied into this existing production system.

In February 2026, the full-field development of Ndungu commenced with the first three production wells. A total of 7 production wells and 4 injection wells are planned for this phase, with peak production of approximately 60,000 barrels per day. Ndungu initially processes production through the existing N'Goma FPSO and will subsequently be tied back to the Agogo FPSO, thereby forming a phased development model in which the Agogo FPSO and the existing West Hub facilities operate in coordination.

As the West Hub Tails contract enters execution, the project's subsequent engineering focus will shift to fabrication at the Ambriz base, integration of the 62-kilometer pipeline and cable system, and deepwater installation. Saipem's approximately two-and-a-half-year contract period will cover both the onshore fabrication and offshore construction phases, ultimately integrating the new subsea production facilities into the Agogo FPSO processing system and continuing to expand the oil and gas recovery scope in the western area of Block 15/06.