Angola Approves $5.1 Billion Greater PAJ Offshore Oil Project
Azule Energy and its partners have approved the $5.1 billion Greater PAJ offshore oil project in Angola, marking a significant investment in the country’s energy sector. The approval was confirmed during a signing ceremony on Monday, with government and company officials highlighting the project’s importance for future oil production.
The Greater PAJ development represents Angola’s first integrated cross-block oil project. The initiative brings together resources from multiple offshore areas and aims to strengthen the country’s position as a leading oil producer in Africa.
Partners Back Major Offshore Development
Azule Energy, a joint venture between BP and Eni, operates the project. Other partners include Equinor, Angola’s National Agency for Petroleum, Gas and Biofuels (ANPG), and state-owned energy company Sonangol.
The investment follows recent expansion efforts by Azule, Angola’s largest independent oil and gas producer. Earlier developments included the start-up of the Agogo floating production, storage and offloading vessel (FPSO) and progress on the New Gas Consortium project.
Moreover, the approval reinforces continued confidence in Angola’s offshore energy potential as companies seek to unlock additional resources from established producing regions.
Deepwater Project Targets Significant Oil Reserves
The Greater PAJ project is located in the deepwater Lower Congo Basin. It will connect existing production assets in Block 31 with nearby discoveries in Block 31/21 through an integrated development strategy.
In addition, the project will utilise a new FPSO to support offshore production operations. By combining resources across the two blocks, operators aim to maximise efficiency and extend the productive life of existing infrastructure.
According to a statement issued following the final investment decision, the development is associated with estimated oil reserves of 252 million barrels across the two blocks.
Furthermore, first oil production is expected during the first half of 2029, providing a long-term contribution to Angola’s crude output.
Angola Seeks To Sustain Oil Production
Azule signed a production-sharing agreement for Block 31/21 in 2023 and holds a 50% interest in the block alongside Equinor.
Commenting on the project, Azule Energy Chief Executive Officer Joseph Murphy said the Greater PAJ development would help sustain production, generate value for the country and strengthen Angola’s role as a major energy supplier.
Meanwhile, Angola continues efforts to attract investment into its oil and gas sector. The country has introduced regulatory reforms designed to encourage development in mature and marginal fields as it seeks to maintain crude production at around one million barrels per day.
As a result, international energy companies have continued to expand their activities in the country. In September, Eni’s chief operating officer said Azule planned to invest a further $5 billion in Angola’s oil and gas industry over the coming years.
Engineering Contracts Signed
Alongside the project approval, contracts were signed with several specialised engineering and technology firms selected to support the development.
These agreements include partnerships with Baker Hughes, Saipem and TechnipFMC. The companies are expected to provide engineering expertise, equipment and technical services for the offshore project as development work progresses towards production.
With inputs from Reuters