Azule Energy Pioneers World’s First Green FPSO Vessel in Angola

In an ambitious stride towards securing its place in the global energy market, Angola has embarked on a groundbreaking journey with Azule Energy leading the charge. The country aims to ramp up its oil and gas production, striving to counter expected natural declines. By increasing oil output to 1.1 million barrels per day (bpd) and maintaining this level until 2027, Angola is demonstrating a strong commitment to its energy future.

Equally important is Angola’s plan to bolster its natural gas production, targeting a 25% share of natural gas in its energy mix by 2025. This initiative will not only enhance the feedstock for the Angola LNG facility but also solidify the country’s role in the global energy landscape. Azule Energy is at the forefront of this transformation, poised to play a critical role in achieving these ambitious goals.

Azule Energy stands as one of Angola’s largest independent equity producers of oil and gas, managing two billion barrels equivalent of net resources. With stakes in 20 licenses, including 11 operated ones, and participation in the Angola LNG joint venture, Azule Energy is a key player in the nation’s energy sector. The company has set an impressive target of increasing oil production to 250,000 bpd between 2023 and 2026, while also accelerating gas monetisation through the New Gas Consortium (NGC). In addition, Azule Energy plans to develop 500MW of renewable energy by 2025, aligning closely with government efforts to enhance energy security.

Among the major upcoming projects is the Agogo Integrated West Hub development, set to create a new production hub at Block 15/06. This project will utilise the existing Ngoma floating production storage and offloading vessel (FPSO) and the under-construction Agogo FPSO, with a capacity of 120,000 bpd and a gas injection capacity of 230 million cubic feet per day. Scheduled to come online in 2026, this project underscores Azule Energy’s commitment to maximising output from existing fields.

Azule Energy’s portfolio also includes operated blocks like Cabinda Norte and Cabinda Centro (onshore), as well as offshore Blocks 31, 15/06, 1/14, 18, and 28. The company operates four FPSO vessels, each with a capacity of 1.75 million bpd. By investing in incremental production at these blocks, Azule Energy aims to drive energy security across Angola.

In addition to oil, Azule Energy is spearheading Angola’s first non-associated gas project through the NGC. The first phase will monetise gas from the Quiluma and Maboqueiro fields, producing four billion cubic meters of gas per year via two offshore platforms and an onshore gas processing plant. This project, expected to commence production in 2026, will supply gas to the Angola LNG plant, supporting diversification and boosting gas monetisation.

Azule Energy’s commitment to Angola is unwavering. “Angola is, and remains, at the core of our corporate strategy even as we explore other opportunities outside. Our leadership is fully committed to investing and developing local content in Angola because we believe that is the right thing to do,” says Adalberto Fernandes, government affairs director at Azule Energy.

A significant milestone in Azule Energy’s journey is the development of the world’s first green FPSO vessel, the Agogo FPSO. This pioneering infrastructure incorporates carbon capture and storage capabilities, significantly reducing CO2 emissions. The FPSO features the world’s first post-combustion CO2 capture plants installed on an offshore facility and integrates advanced electrification and automation technologies. This aligns with the company’s vision to achieve net-zero Scope 1 emissions by 2030.

Azule Energy is also preparing to release its first sustainability report, detailing its environmental, social, and governance (ESG) practices. The report will outline a comprehensive plan to achieve net-zero emissions and introduce stakeholders to the technologies driving sustainable oil and gas operations. Furthermore, Azule Energy is dedicated to strengthening local content in Angola, supporting job creation, and incorporating skills development into all projects. The Block 15/06 project alone is expected to generate $5.6 billion and create 1,400 jobs by 2044.

Azule Energy’s onshore gas processing plant in Soyo, part of the NGC, includes specific local content components, with an estimated $1 billion allocated to procuring local goods, services, and materials. Coupled with renewable energy investments, these efforts set a new standard for sustainable oil and gas operations in Angola.

In summary, Azule Energy’s pioneering initiatives not only propel Angola towards energy security but also set a benchmark for sustainability in the industry. By integrating cutting-edge technologies and a steadfast commitment to local development, Azule Energy is shaping a brighter, more sustainable future for Angola’s energy sector.