TotalEnergies’ trifecta award bundle for oil project in Angola brings Saipem $3.7 billion

Italy’s engineering, drilling, and construction services provider Saipem has pulled off a multibillion-dollar hat trick in Angola with TotalEnergies E&P Angola, a subsidiary of France’s energy giant TotalEnergies.

Thanks to the three new contracts for the deepwater Kaminho project in Block 20/11, which come with an overall amount of $3.7 billion, Saipem will undertake work related to the development of Cameia and Golfinho oil fields, located approximately 100 km off the coast of Angola. The trio of awards follows TotalEnergies’ final investment decision (FID) for the project, slated to come online in 2028.

While the first contract is for the engineering, procurement, construction, transportation, and commissioning of the Kaminho floating production storage and offloading (FPSO) vessel, the second one entails the operation and maintenance (O&M) of the same unit for a firm period of 12 years with a potential eight-year extension.

On the other hand, the Italian player’s third and final deal covers the engineering, procurement, supply, construction, installation, pre-commissioning, and assistance for the commissioning and start-up of a subsea, umbilicals, risers, and flowlines (SURF) package.

Moreover, Saipem explains that the SURF bundle encompasses approximately 30 km of 8” and 10″ subsea flowlines, risers, and umbilicals, adding that the associated structures will be fabricated in its local yard in Ambriz. The Kaminho project entails the conversion of a very large crude carrier (VLCC) to an FPSO, which will be connected to a subsea production network.

“The joint award of the SURF, FPSO and O&M contracts confirms the competitiveness of Saipem’s integrated business model, in particular the company’s unique capability to provide offshore and plant project management and engineering services, combined with a state-of-the-art fleet and local fabrication capacity,” highlighted the Italian giant.

Regarding the offshore campaign, specifically the J-lay vessel, the company will deploy its field development ship FDS and involve the local supply chain for logistics and fabrication activities. TotalEnergies E&P Angola operates Block 20/11 with a 40% interest, alongside Petronas Angola E&P Ltd (PAEPAL, 40%) and Sonangol Pesquisa & Produção SA (20%).

The deal with TotalEnergies comes only days after Saipem scored another contract in Angola, worth approximately $850 million, with Azule Energy, a 50/50 joint venture between BP and Eni. Last month, the Italian heavyweight got a green light to proceed with its assignment on ExxonMobil’s sixth oil development at the Stabroek block off the coast of Guyana.

Currently, Saipem has seven fabrication yards, 15 drilling rigs, of which 9 are owned, and an offshore fleet of 21 construction vessels, of which 17 are owned and 4 are owned by third parties and managed by the firm.