Sub-Saharan Africa: More Than $1 Billion Contracts Awarded to European Companies in 2023
…As Saipem, TechnipFMC, Petrofac win big on offshore project developments in West and Central Africa.
By Ndubuisi Micheal Obineme
Offshore project developments in the Ivory Coast, Angola, and the Republic of the Congo (ROC) have created lucrative opportunities for European service providers, who offer the latest technologies in drilling, engineering, and subsea services.
As a result, large-scale contracts have been awarded in the past twelve months to support oil and gas exploration activities across the continent.
According to an article published by Energy Capital & Power, it outlined top five service contracts by value awarded to European companies in sub-Saharan Africa oil and gas industry in 2023.
Here is the lists of the top five service contracts by value awarded to European companies:
Saipem, Ivory Coast: $400 million
In March 2023, Italian multi-national company, Saipem was awarded a $400-million contract for Subsea Umbilicals, Risers, and Flowlines, as part of the Baleine Phase 2 Project, operated by Eni and Petroci offshore Ivory Coast.
The contract involves the engineering, procurement, construction, and installation of approximately 20 km of rigid lines, 10 km of flexible risers and jumpers, and 15 km of umbilicals.
Saipem’s modern vessels, including the Deep Value Driller, will conduct the installation works in 2024. The contract follows Saipem’s contributions to Baleine Phase 1, which utilized the Saipem 10000 and Saipem 12000 vessels for drilling activities and fast-track mode contracts.
TechnipFMC, Angola: $75-250 million
French service company, TechnipFMC secured a significant contract in February 2023 for the Girassol Life Extension Project, led by TotalEnergies and its Block 17 partners.
The development marks the first subsea life extension project in the region.
Under the contract, TechnipFMC will be responsible for the engineering, procurement, and supply of flexible pipes and connectors for the offshore Girassol field. The flexible pipes will extend the life of the field by bypassing rigid pipe bundles previously installed in 2001.
TechnipFMC, Angola: $75-250 million
TechnipFMC bagged a second Angola contract in June 2023 with Azule Energy for subsea production systems in the Block 18 infills development offshore.
This marks TechnipFMC’s first subsea production systems contract with Azule Energy, following a previous announcement for a flexible pipe supply contract. The project involves reconfiguring the existing field layout to accommodate new equipment supporting Azule’s production increase plan.
TechnipFMC will provide subsea trees, manifolds, subsea distribution equipment, topside controls, jumpers, flowlines, and umbilicals.
Saipem, Congo-Brazzaville: $100 million
In October 2023, Saipem secured a $100-million contract with Eni Congo for the conversion of the Scarabeo 5 semi-submersible drilling unit into a floating production unit (FPU), as part of the Congo LNG Project.
The FPU will function as a semi-submersible production platform, separating gas from liquids and boosting the gas to supply a nearby floating LNG unit.
The contract covers engineering, procurement, construction, transportation, and commissioning of the FPU, with offshore installation off the coast of ROC scheduled for completion by Q4 2025. The Congo LNG Project will have an LNG production capacity of three million tons per year.
Petrofac, Ivory Coast: Multi-million-dollar contract
International energy services company, Petrofac, secured a multi-million-dollar integrated services contract in July 2023 with CNR International for the FPSO Espoir Ivoirien offshore Ivory Coast. The three-year deal involves Petrofac’s Asset Solutions business delivering integrated services for the FPSO, which was sold by BW Offshore to CNR in June for $20 million.
Approximately 110 personnel, both on- and offshore, will transition from BW Offshore to Petrofac as part of the agreement.
The move enhances Petrofac’s presence in Africa, aligning with its expanding portfolio of service contracts across the continent.
Furthermore, The Invest in African Energy (IAE) forum – returning to Paris for its second edition in May 2024 will present an interactive opportunity for service companies to access African upstream projects and forge decisive partnerships.
