Angola lands $5.1billion offshore oil investment as Azule Energy backs production growth

Angola has secured a fresh $5.1 billion vote of confidence in its oil industry after Azule Energy and its partners approved the Greater PAJ offshore development, one of the country's most significant energy investments in recent years.

• Angola has approved a $5.1 billion investment in the Greater PAJ offshore oil project, led by Azule Energy and its partners.
• The project will develop 252 million barrels of recoverable reserves and produce up to 95,000 barrels of oil per day from 2029.
• It is Angola’s first integrated cross-block oil development, aimed at reducing costs and extending the life of the country's offshore oil industry.
• The investment is also expected to create jobs, boost local industry, and help sustain Angola’s crude production.

The final investment decision (FID), announced in Luanda on Monday, clears the way for the development of the Greater PAJ project across offshore Blocks 31 and 31/21, an area estimated to hold 252 million barrels of recoverable oil reserves.

The project is being developed by Azule Energy, the BP and Eni joint venture that has become Angola's largest independent oil and gas producer, alongside Equinor, Sonangol E&P and Angola's National Agency for Oil, Gas and Biofuels (ANPG).

The approval, for Angola is not just another offshore development, it is a key part of the country's effort to slow production declines from mature oil fields and preserve its position as one of Africa's largest crude exporters.

The Southern African nation has spent years introducing fiscal reforms, revising licensing terms and encouraging investment in mature assets as output gradually declined from peaks above 1.8 million barrels per day more than a decade ago.

Authorities are now targeting production of about 1 million barrels per day while pursuing new offshore discoveries and gas developments.

Angola's first integrated cross-block oil development

Greater PAJ is being described as Angola's first integrated cross-block oil project, bringing together resources from two neighbouring concessions under a shared development model.

Instead of building duplicate infrastructure for each block, the project will use common facilities, including a new floating production, storage and offloading vessel (FPSO), helping reduce costs and improve operational efficiency.

The development will combine five offshore fields, Palas, Astraea and Juno in Block 31, alongside Urano and Dione in Block 31/21.

According to Azule Energy, the project will include 17 wells, comprising 10 oil producers and seven water injectors, connected to a new FPSO designed to process up to 95,000 barrels of oil per day.

First production is expected during the first half of 2029.

Joseph Murphy, Chief Executive Officer of Azule Energy, described the project as a milestone for both the company and Angola's energy sector.

"The Final Investment Decision on Greater PAJ marks an important milestone for Azule Energy and for Angola's energy sector. Greater PAJ will contribute to sustaining production, creating value for the country and reinforcing Angola's position as a key energy supplier in the years ahead," he said.

Latest phase of Azule's expansion

The investment extends a broader expansion drive by Azule Energy, which was created in 2022 through the merger of BP's Angolan business and Eni Angola.

The company currently accounts for roughly 20% of Angola's oil production, producing about 220,000 barrels of oil equivalent per day across 18 licensed blocks.

The Greater PAJ approval follows a series of major projects advanced by the company in recent years, including the Agogo integrated west hub development and the New Gas Consortium project, Angola's first non-associated natural gas venture.

The latest investment also reinforces expectations that international oil companies will continue committing capital to Africa's offshore sector despite growing global pressure to accelerate the energy transition.

Last year, Azule said it planned to invest approximately $5 billion in Angola's oil and gas industry over the coming years as it expanded both hydrocarbon and gas production.

Local industry boost

Beyond crude production, the project is expected to generate significant economic activity inside Angola.

Azule estimates the development will create approximately 1.8 million man-hours of local content work through fabrication, engineering, offshore installation, logistics support, workforce training and other project activities.

The FID ceremony also marked the signing of six major contracts covering the FPSO, subsea systems, risers, flowlines, rigid pipes and installation works.

The contracts were awarded to a group of international engineering firms including Baker Hughes, OneSubsea, TechnipFMC, Saipem, Vallourec and CIMC Raffles.

The investment is one of the largest upstream commitments announced in Angola since the country exited the Organization of Petroleum Exporting Countries (OPEC) in late 2023, underscoring Luanda's determination to attract capital and extend the lifespan of its offshore petroleum industry.