Aker Solutions has secured a sizeable long term frame agreement with Azule Energy to provide engineering, procurement, and construction services (EPC) for brownfield projects and modifications for two floating production, storage, offloading (FPSO) units in Angola.
Aker Solutions defines a sizeable contract as being between $46.65 million and $140 million (NOK 0.5 billion and NOK 1.5 billion). The work will be focused on the FPSO units Greater Plutonio and PSVM, the company said in a news release.
The contract is a continuation of the current frame agreement between Aker Solutions and operator Azule Energy. It is a frame agreement covering maintenance and modification activities with a duration of three years plus two one-year options.
“We are building on our robust track record in Angola, dating back to 1998. Aker Solutions is a leading service operator and has a clear ambition to grow internationally. This new contract strengthens our global life cycle operations and is a pivotal project for our offices in Aberdeen and Luanda,” Aker Solutions Executive Vice President and Head of Life Cycle Paal Eikeseth said.
According to the release, the contract will be executed and delivered by the Aker Solutions team based in Luanda, Angola and Aberdeen, United Kingdom. The project management team will be based in Angola and the project will continue to develop locally.
Currently, over 40 percent of the total scope volume is being executed in Angola and an increased target has been set for the new contract period. Throughout the current contract period, there has been substantial growth in terms of in-country execution and the development of the local workforce of Aker Solutions, the news release stated.
“We are actively recruiting to enhance the strength and competence of our existing project team. Moving forward, our local business development efforts will focus on improving and strengthening relationships with local subcontractors, as well as hiring and training local personnel. We are pleased to have received renewed trust from Azule Energy and will continue to ensure the delivery of reliable and safe executions to safeguard the integrity of the FPSOs,” Eikeseth added.
A joint venture owned by Eni and BP, Azule Energy is Angola’s largest independent equity producer of oil and gas. The Azule Energy contract will be booked as part of Aker Solutions’ second quarter order intake in the Life Cycle segment, the company noted.
According to Aker’s website, it delivers integrated solutions, products and services to the global energy industry, as well as enabling low-carbon oil and gas production and developing renewable solutions to meet future energy needs.
Azule Energy describes itself as an upstream player, with exploration and production activities in 20 licensed blocks. Azule’s growing focus on natural gas plays will support Angola in its role as a global LNG exporter. In addition, Azule is developing new opportunities in renewables with a new solar business, according to the company’s website.
In May, Aker Solutions secured an engineering, procurement, construction, installation and commissioning (EPCIC) contract from Equinor ASA to upgrade the wastewater treatment plant facilities and lower the environmental impact of the Mongstad refinery on the west coast of Norway.
The study aims to identify solutions to significantly reduce carbon dioxide emissions from the existing refinery and transform the site into a new low-carbon industry cluster whilst demonstrating safe, technical, and economically feasible solutions, according to an earlier report.
The Mongstad refinery has wastewater treatment plant facilities that are designed to treat water from the refinery, offsite sources and the oil terminal. Located north of Bergen, it is closely integrated with an oil terminal connected to multiple oilfields in the North Sea. It also interfaces with crude tankers that are docked at the port.
To contact the author, email rocky.teodoro@rigzone.com
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