Azule Energy, a joint venture between BP and Eni, and its partners have approved the $5.1 billion Greater PAJ offshore oil project in Angola, company and government officials said at a signing ceremony on Monday.
Partners in the project, Angola's first integrated cross-block development, include Norway's Equinor, Angola's oil and gas agency ANPG and state-owned firm Sonangol. The development is operated by Azule.
The investment marks the latest expansion by Azule, Angola's largest independent oil and gas producer, following the recent start-up of its Agogo floating production, storage and offloading vessel (FPSO) and the New Gas Consortium project.
The deepwater Greater PAJ development in the Lower Congo Basin will use a new FPSO and tie together existing production in Block 31 with nearby discoveries in Block 31/21.
Total oil reserves in both blocks associated with the development are estimated at 252 million barrels, with first oil expected in the first half of 2029, a press statement celebrating the FID said.
Azule, the operator of both blocks, signed a production-sharing agreement for Block 31/21 in 2023 and holds a 50 per cent stake alongside Equinor.
"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," Joseph Murphy, CEO of Azule Energy, said in a statement.
A major African oil producer, Angola has overhauled its regulatory regime to attract new investment into its mature and marginal fields as it tries to maintain crude oil output of one million barrels a day.
In September, Eni's chief operating officer told Reuters that Azule planned to invest another $5 billion into Angola's oil and gas sector over the next few years.
Contracts with various specialised engineering and technology companies selected for the energy project were also signed on Monday, including with Baker Hughes, Saipem and TechnipFMC.
(Reporting by Miguel Gomes and Wendell Roelf; Writing by Sfundo Parakozov; Editing by Bate Felix and Jan Harvey)
