Oil & Gas

Yinson steps up for Azule FPSO off Angola

Yinson Production has agreed to work on the Agogo FPSO for Azule Energy, in Angola’s Block 15/06.

Azule works on the block via the Eni Angola subsidiary. The Yinson Azalea Production unit has reached an agreement for preliminary activities on the work.

Yinson said the deal was worth $218 million. The company said the contract would cover provision, operation and maintenance for an FPSO.

The preliminary work will run for 60 days and allows the companies to meet the project schedule while working on the firm contract.

Malaysian research house CGS-CIMB predicted that Yinson would win the Agogo work in November. The operator had already picked the contractor as the preferred bidder.

The FPSO is expected to start up in mid-2026 with 120,000 barrels per day of capacity. CGS-CIMB forecast the time charter rate for Agogo would be more than $750,000 per day, versus the $600,000 Yinson receives for projects in Brazil.

“If Yinson secures the Agogo award, the project execution team that was previously managing the already-completed [Anna Nery FPSO] project will manage the Agogo project,” CGS-CIMB said.

Eni began initial production from Agogo in January 2020, only eight months after discovery.

Block 15/06 has two FPSOs currently producing, on the west and east hubs. Eni and Angola’s Agência Nacional de Petróleo, Gás e Biocombustíveis (ANPG) have backed plans for another FPSO for Agogo.

Eni drilled more appraisal wells on Agogo in 2020 and increased the oil in place figure to around 1 billion barrels. The appraisal well Agogo-3 was able to flow at more than 15,000 bpd, Eni said.

TechnipFMC in a presentation in September estimated subsea construction contracts at Agogo to be worth more than $1 billion.

Azule is a 50:50 joint venture of Eni and BP.

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