TechnipFMC lands ‘significant’ subsea contract offshore Angola

TechnipFMC has won a key subsea contract from Azule Energy to supply subsea production systems (SPS) for the Block 18 infills development, offshore Angola.

TechnipFMC on Monday confirmed the award and noted the company’s “first SPS contract with Azule Energy follows the announcement of a flexible pipe supply contract for Azule’s Agogo Integrated West Hub Development”.

The contractor described the award as “significant” — which it values between $75 million and $250 million.

“This award will be included in inbound orders in the second quarter of 2023,” TechnipFMC stated.

The company added it would “design and manufacture subsea trees, a manifold, subsea distribution equipment and topside controls; as well as jumpers, flowlines and umbilicals”.

“The existing field layout will be reconfigured to accommodate new equipment that will continue to support Azule’s production increase plan,” it said.

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Jonathan Landes, president, of subsea at TechnipFMC said that the company is “delighted to be supplying subsea production systems to Azule Energy”, further developing its relationship with the operator.

Joint venture

Azule Energy is a 50:50 independent joint venture that combines supermajor BP and Eni’s Angolan businesses.

The company is Angola’s largest independent equity producer of oil and gas, holding 2 billion barrels equivalent of net resources, and is hoping to grow about 250,000 barrels equivalent a day of equity oil and gas production over the next four years, according to BP.

Azule holds stakes in 16 licences — of which six are exploration blocks — and participation in Angola LNG joint venture.

Subsea opportunities

TechnipFMC earlier this year said that its global subsea contract opportunities are estimated at nearly $25 billion.

Brazil continues to represent the bulk of new subsea opportunities with 10 of the 34 potential contracts to be awarded over the next two years, it stated.

TechnipFMC noted that its backlog of orders for the next three years also increased by 13% during the reporting period, with most orders placed in the subsea segment of the business.

In its results presentation, TechnipFMC identified the subsea backlog at $3.3 billion in 2023, $3.9 billion for 2024 and $2.2 billion for 2025 and onwards.

Subsea reported first-quarter revenue of $1.4 billion, an increase of 3.4% from the fourth quarter of 2022.