Angolan USD 6 Billion Oil Platform Close to Being Built by Chinese Yard

Chinese shipyards are negotiating to become subcontractors for the floating production, storage and offloading (FPSO) vessel for TotalEnergies’ delayed USD 6 billion Cameia-Golfinho project offshore Angola.

According to Upstream Online, Italian engineering powerhouse Saipem is now entering the final stages of discussions with Chinese shipyards to solidify its decision on selecting a subcontractor.

Asian contracting sources told the site that a delegation comprising commercial officials from Saipem and TotalEnergies this week is addressing the intricacies of commercial and technical aspects.

China Still the Main Destination for Angolan Oil

The Italian contractor is aiming to select one yard in March and to begin construction in July, the same source added.

At the end of September 2023, TotalEnergies EP Angola Block 20 finalized the sale to Petronas Angola E&P Ltd. (PAEPL) of a 40% interest in Block 20 in the Kwanza Basin in Angola for $400 million.

The transaction was set as of 1 January 2023 and is subject to customary price adjustments.

China cutting oil shipments from Angola and Brazil

Block 20 contains the Cameia and Golfinho oil discoveries, located around 150 km southwest of Luanda. These discoveries are planned to be developed through a system of subsea wells connected to an FPSO with an oil production capacity of 70,000 B/D, which will be the seventh FPSO developed by TotalEnergies in Angola.

The project will also include the development of a combined cycle turbine for electricity generation and subsea pipelines and additional infrastructure to connect the Cameia and Golfinho wells.

Following the farm-in agreement, TotalEnergies retains the operatorship and a 40% interest in the block, alongside PAEPL (40%) and Sonangol Pesquisa e Produção S.A. (20%).

 

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