Yinson Production has entered into a firm contract with a wholly owned subsidiary of Azule Energy for the provision, operation and maintenance of a floating, production, storage and offloading (FPSO) asset for the Agogo integrated west hub development project in Angola. The contract has an estimated aggregate value of approximately US$5.3bn and a firm period of 15 years from the date of the final acceptance, with the option to extend for a further 5 years. FPSO Agogo is expected to commence operations in the fourth quarter of 2025.
Eni made a significant discovery in the first appraisal well of the Agogo discovery in Block 15/06 in July 2019. The well results confirmed the extension of the Agogo reservoir to the north of the discovery well. The Agogo field would hold 650 mbl of oil in place and production started in January 2020, thanks to a subsea tie back to the N’Goma FPSO.
Azule is Angola’s largest independent oil and gas producer, and a 50/50 joint venture between BP and Eni. The consortium holds 2 Gboe of net resources, including stakes in 16 licences (of which 6 are exploration blocks) and a participation in Angola LNG JV. Azule Energy is expected to increase its output to 250 kboe/d over the next 5 years, thanks to a pipeline of new projects that are scheduled to come on stream over the next few years, comprising the Agogo Full Field and PAJ oil projects in Blocks 15/06 and 31 respectively, and the New Gas Consortium (NGC), the first non-associated gas project in Angola. The new company also holds exploration acreage in excess of 30,000 km2.