Aker Solutions secures strategic long-term agreement with Azule Energy for FPSO modifications in Angola

Aker Solutions, a global leader in engineering, procurement, and construction services, has recently secured a significant long-term frame agreement valued between NOK 0.5 billion and NOK 1.5 billion with Azule Energy. This agreement marks the continuation of Aker Solutions‘ collaboration with Azule Energy, Angola’s largest independent equity producer of oil and gas, a joint venture between Eni and bp. The contract encompasses a comprehensive suite of services for brownfield projects and modifications on two key FPSOs (floating production, storage, and offloading units) named Greater Plutonio and PSVM.

Contract Scope and Strategic Importance

The scope of the contract includes engineering, procurement, and construction services for maintenance and modification operations on the two FPSOs. This frame agreement extends for three years, with an option for an additional two one-year extensions, reinforcing the long-standing partnership between Aker Solutions and Azule Energy.

Aker Solutions wins frame agreement worth up to NOK 1.5 billion with Azule Energy for FPSO modifications in Angola

The contract execution involves Aker Solutions’ teams based in Luanda, Angola, and Aberdeen, UK, with project management centered in Angola to maintain proximity to operations and foster local development. This strategic positioning highlights Aker Solutions’ commitment to enhancing its service delivery within Angola, a region where the company has been actively engaged since 1998.

Local Development and In-Country Execution

A notable aspect of the agreement is the emphasis on local workforce development and in-country execution. Over 40 percent of the contract’s scope is set to be carried out in Angola, with ambitious targets to increase this figure during the new contract period. Paal Eikeseth, Executive Vice President and Head of Life Cycle at Aker Solutions, expressed the company’s strategy to leverage this project to strengthen its life cycle operations globally, particularly through its facilities in Aberdeen and Luanda.

“We are actively recruiting to enhance the strength and competence of our existing project team,” noted Eikeseth. He also emphasized the company’s efforts to foster local business development by improving relationships with local subcontractors and enhancing the training and hiring of local personnel.

Renewed Trust and Future Prospects

The renewed agreement not only underscores Azule Energy’s trust in Aker Solutions but also aligns with Aker’s goals of delivering reliable and safe project executions. This contract is expected to be a pivotal element in Aker Solutions’ portfolio, with the order set to be included in the company’s second-quarter intake for its Life Cycle segment.

This agreement between Aker Solutions and Azule Energy is poised to set a benchmark for collaborative engagements in the oil and gas industry, particularly in regions like Angola where local content and workforce development are increasingly pivotal. The strategic focus on local execution and workforce training reflects a sustainable approach to business practices in emerging markets, potentially influencing future industry standards.