Saipem bags contracts worth $3.7bn for Kaminho project in Angola

TotalEnergies EP Angola Block 20, a subsidiary of TotalEnergies, has awarded Saipem three significant contracts for the Kaminho project off the coast of Angola, amounting to a total value of $3.7 billion. These contracts mark a critical phase in the development of the Cameia and Golfinho oil fields, highlighting Saipem’s integral role in advancing one of Angola’s foremost deepwater oil ventures.

Comprehensive Contractual Details

The first of the three contracts encompasses the Engineering, Procurement, Construction, Transportation, and Commissioning (EPCTC) of the Kaminho Floating Production Storage and Offloading (FPSO) vessel. This contract is pivotal, as it lays the groundwork for the subsequent operations of the FPSO.

The second contract involves the Operation and Maintenance (O&M) of the FPSO for an initial period of 12 years, with a potential extension of eight years. This contract leverages Saipem’s extensive experience gained from operating three other FPSOs in the region, emphasizing the company’s entrenched expertise in managing complex offshore oil operations.

Saipem wins $3.7 billion contracts with TotalEnergies for the Kaminho project in Angola, paving the way for sustainable deepwater oil development.

The third contract covers the Engineering, Procurement, Supply, Construction, Installation, Pre-Commissioning, and Commissioning Assistance for a comprehensive Subsea, Umbilicals, Risers, and Flowlines (SURF) package. This package includes around 30 km of 8” and 10″ subsea flowlines and risers, and umbilicals, with fabrication set to occur at Saipem’s local yard in Ambriz. This highlights Saipem’s commitment to supporting the local economy through job creation and skills development.

Strategic Impact and Future Projections

The joint award of the SURF, FPSO, and O&M contracts underscores the efficacy of Saipem’s integrated business model. This approach combines offshore and plant project management with engineering services, alongside advanced fleet capabilities and local fabrication capacities, enhancing competitive advantage and operational efficiency.

These contracts are instrumental following TotalEnergies’ announcement, alongside partners Petronas and Sonangol, of the Final Investment Decision (FID) for the Kaminho deepwater project. This venture, situated 100 km off Angola’s coast in 1,700 m water-depth, represents the first major deepwater development in the Kwanza basin. The project involves transforming a Very Large Crude Carrier (VLCC) into an FPSO unit, designed to minimize environmental impact by eliminating routine flaring and implementing all-electric operations. With a focus on sustainability and economic viability, the development is expected to commence production in 2028, achieving a production plateau of 70,000 barrels of oil per day.

The strategic collaboration between Saipem and TotalEnergies, through these contracts, not only fortifies their positions in the global oil market but also sets a benchmark for environmentally conscious development in deepwater oil extraction. As these projects progress, they promise significant contributions to both the Angolan economy and the broader goals of sustainable energy production.