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Home / Energy & Power / Azule Energy awards 350 million USD subsea development contract to Saipem in Angola

Azule Energy awards 350 million USD subsea development contract to Saipem in Angola

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Azule Energy awards 350 million USD subsea development contract to Saipem in Angola
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Saipem has secured an offshore engineering, procurement and construction contract worth approximately 350 million USD from Azule Energy for Angola's West Hub Tails project. The project involves subsea infrastructure installation to support deepwater oil production over a two-and-a-half-year execution period.

ANGOLA Azule Energy, an incorporated joint venture between Eni and bp, has selected Italian energy services provider Saipem to deliver major subsea infrastructure for the West Hub Tails development in offshore Angola. Under the contract valued at roughly 350 million USD, execution will span approximately two and a half years to expand subsea tie-backs for the Agogo Integrated West Hub Development located 180 kilometers off the Angolan coast.

Saipem is an international engineering and construction contractor operating across offshore and onshore energy sectors, specializing in deepwater subsea architecture, complex field developments, and maritime construction services. The assigned scope encompasses the engineering, procurement, fabrication, transportation, and installation of nearly 62 kilometers of rigid flowlines, risers, and umbilicals positioned at water depths reaching 1,750 meters. Fabrication will be executed locally at Saipem's Ambriz facility in Angola, utilizing local supply chain assets and workforce capabilities before offshore deployment via specialized construction vessels.

This capital commitment underscores ongoing investment flows into West Africa's deepwater hydrocarbon sector, reinforcing Angola's position as a focal point for offshore oil and gas field expansions. The assignment highlights a deliberate industry shift toward maximizing existing offshore production hubs by connecting adjacent fields to operational Floating Production, Storage, and Offloading units, thereby optimizing operational expenditure and capital intensity for operators.

For global supply chains and subsea equipment manufacturers, the project demonstrates sustained demand for high-specification construction vessels and complex subsea hardware in deepwater environments. The emphasis on localized fabrication reinforces regulatory compliance demands for in-country value creation across major African energy markets, providing local labor forces and engineering vendors with extended backlog visibility through late decade operations.

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