Angola takes Africa’s top spot as Nigeria’s oil production falters

FID on new gas project

In November 2019, Angola LNG shareholders struck an agreement to form a New Gas Consortium to develop non-associated gas offshore Angola, which will supply the Angola LNG in 2026. In July, the New Gas Consortium gained FID for the Quiluma and Maboqueiro (Q&M) gas project, the first non-associated gas project in Angola.

Led by Italy’s Eni, the consortium partners are Chevron affiliate Cabinda Gulf Oil Co Ltd (CABGOC), Sonangol P&P, BP and TotalEnergies, together with ANPG.

The project includes two offshore wellhead platforms, an onshore gas processing plant and a connection to Angola LNG plant for marketing condensates and gas via LNG cargoes. Project execution will start in 2022 with first gas planned 2026 and an expected production of 330 mmscf/day at plateau (approximately 4Bn m³/year).

“Gas is playing a central role in Angola’s rise”

Eni said sanctioning the Q&M Project is “an important milestone” towards unlocking undeveloped sources of energy and to bring a reliable supply of gas to the Angola LNG plant.

New Gas Consortium partners encompass Eni (25.6%, operator), CABGOC (31%), Sonangol P&P (19.8%), BP (11.8%) and TotalEnergies (11.8%).

Eni holds a 13.6% interest in Angola LNG, together with CABGOC (36.4%), Sonangol (22.8%), BP (13.6%) and TotalEnergies (13.6%).

In March 2022, Eni and BP signed an agreement to form Azule Energy, a joint venture company which will combine both companies’ business in Angola. The Q&M Project will be guaranteed by Azule Energy at the conclusion of the transaction.

The New Gas Consortium awarded three engineering procurement and construction (EPC) contracts to Saipem for the Q&M project, valued at US$900M. Saipem’s work scope covers hook-up and commissioning assistance of the Quiluma platform and of the relevant onshore natural gas processing plant.

Top OSV owners in West Africa

Current vessel utilisation rates in West Africa are below other major offshore oil and gas markets, except for the US Gulf of Mexico. Based on its analysis of AIS data, VesselsValue reported 508 offshore support vessels (OSVs), 87 offshore construction vessels (OCVs) and 21 mobile offshore drilling units (21) were active in the region as of 1 September. Some 230 OSVs, 37 OCVs and four MODUs were in lay-up. The OSV fleet had a utilisation rate of 69%, OCV 70% and MODU fleet 84%. VesselsValue considers a vessel out of work or laid up if it has not signalled for over eight weeks.

French OSV operator Bourbon had the largest fleet in the region with 34 vessels, followed by Tidewater Marine and Multiplan Nigeria, with 19 vessels each, Awaritse Nigeria with 15 and Seacor Marine with 12.

“Sanctioning the Q&M Project is an important milestone towards unlocking undeveloped sources of energy”

Greater Tortue Ahmeyim LNG project

Bourbon Mobility’s fast crew and supply transfer unit is supporting Saipem and Eiffage, which are building the maritime infrastructure for the hub terminal for BP’s Greater Tortue Ahmeyim LNG project on the maritime border between Mauritania and Senegal.

BP’s partner in the project, Kosmos, reported Phase 1 of the project was 80% complete by the end of Q2 2022, with construction and mechanical completion activities on the Gimi floating LNG vessel continuing and the commissioning work underway at Keppel Shipyard in Singapore, all 21 caissons installed and piling nearly completed at the hub terminal. Kosmos reported the living quarters platform was in transit to the site, subsea equipment has been delivered to the site, work on the export pipeline has begun and two of four wells have been drilled, with a third in progress.

FPSO faces delays

One snag for the project is the floating production, storage and offloading (FPSO) vessel, which is under construction at the COSCO Shipyard in Qidong, China. Covid-19 lockdowns in China delayed the sailway date from Q3 2022 to Q4 2022. “We continue to target first gas in Q3 2023 with first LNG end-2023,” said Kosmos.

And further delays could result from any damage sustained on 16 September when Typhoon Muifa passed through the shipyard. As a result of the typhoon, the mooring lines of the FPSO were compromised, sending the vessel drifting 200 m off the quayside. “Work is underway to enable the vessel to return to the quayside. No injuries have been reported in connection with this incident. The cost of returning the vessel to the quayside and any potential damage is expected to be covered by insurance,” said Kosmos.

Elsewhere, Big Board-listed Helix Energy Solutions expects continued growth potential in West Africa. During Q2 2022, the DP3-class semisubmersible well intervention vessel Q7000 completed an approximate 40-day maintenance period in Namibia and returned to Nigeria for a one-to-four-well campaign. The vessel is transiting to the Asia Pacific region with an approximate 30-day docking prior to a contracted decommissioning campaign offshore New Zealand, expected to start in early 2023.

Meanwhile, the ship-shaped 158-m well intervention vessel Siem Helix 1 was 77% utilised in Q2 2022, completing short-term FPSO support and accommodation work offshore Ghana, prior to starting ROV survey and IRM work for Trident Energy in Brazil in preparation for a decommissioning campaign, which will start either late Q4 2022 or early Q1 2023.

Emar Offshore buys Damen fast crew supply vessels

Damen has sold two fast crew suppliers (FCS) to Netherlands-based Emar Offshore Services.

The 22-m Damen FCS 2206 features an axe-bow design to allow the vessel to cut faster through the waves. With a 25 m² cargo deck, it can carry up to 42 personnel and two crew at speeds of up to 32 knots.

Both vessels were already in stock. The first, E-Six, has already begun operations in Angola supporting the local oil and gas industry, and will be joined by E-Seven shortly. Built in aluminium, these vessels have a range of 315 nautical miles at maximum speed in standard configuration, but with the addition of the optional extra fuel tank, E-Six and E-Seven have a range of 350 nautical miles, which Damen says will allow them to reach the most remote oil and gas platforms.

Optional extras specified by Emar include fire-fighting capability, secondary gensets for redundancy and an auto pilot and night vision package. Both vessels were built at Damen Shipyards Antalya, Turkey, the shipbuilder’s specialist aluminium shipbuilding facility.

Emar is a longstanding Damen client. The company’s managing director Johan van Beek said: “Damen has vessels in stock which are almost finished, and this suits our clients who want to start soonest after a tender award. Besides our fleet of tugs and workboats, Emar Offshore Services also operates four Damen fast crew and supply vessels in West Africa.”

Damen sales manager Benelux Joost van der Weiden added: “Damen is committed to providing full support to Emar and will ensure its new FCS 2206s provide many years of efficient and economical service to its clients.”