European energy services firm secures $1 billion contract to build infrastructure for Angola’s $5.1 billion oil project

Angola’s push to strengthen its place among Africa’s major oil producers has received another boost after Azule Energy awarded a $1 billion contract to Italian contractor Saipem for work on the Greater PAJ project.

• Saipem has won a $1 billion contract to build offshore infrastructure for Angola’s $5.1 billion Greater PAJ oil project.
• The contract is part of a major effort by Angola to sustain crude production and attract new investment in its deepwater sector.
• Saipem will provide engineering, fabrication, transportation, and installation services for subsea facilities and pipelines up to 2,000 meters deep.
• The project aims to stabilize Angola’s oil output, which has declined in recent years, with first oil expected in the first half of 2029.

Italian energy services firm Saipem has secured a $1 billion contract to build offshore infrastructure for Angola’s $5.1 billion Greater PAJ oil project, supporting the country’s push to sustain crude production and attract fresh deepwater investment.

The contract was awarded by Azule Energy Exploration (Angola) Limited and Azule Energy Angola B.V., subsidiaries of Azule Energy, the joint venture owned equally by Italy’s Eni and Britain’s bp.

The project is located about 200 kilometres off Angola’s coast and will run for about 40 months.

Under the deal, Saipem will provide transportation and installation services for one of the most significant ultra-deepwater projects in sub-Saharan Africa.

Angola Looks to Protect Oil Revenue

The award comes shortly after Azule Energy and its partners approved a $5.1 billion final investment decision for Greater PAJ, one of Angola’s largest offshore oil investments in recent years.

Saipem’s $1 billion contract forms part of that wider development, positioning the Italian group among the project’s key service providers.

The investment comes as Angola works to protect oil revenue, which remains its main source of export earnings, foreign exchange and government income.

However, production has come under pressure from declining mature fields, pushing the government to seek new offshore investment to stabilise output and support public finances.

In May 2026, Reuters reported that Angola aimed to keep production near 1 million barrels per day, after output fell from 1.16 million barrels per day in 2024 to 1.07 million barrels per day in 2025.

Similarly, the IMF said Angola’s fiscal and external positions weakened in 2025 after a sharp decline in oil production.

Oil revenue contracted by 24.7% year-on-year in nominal US dollar terms, while output slowed to 1.03 million barrels per day, below the budgeted 1.08 million barrels per day.

Against this backdrop, Greater PAJ is expected to support Angola’s production outlook when first oil begins in the first half of 2029.

Deepwater Infrastructure to Support Greater PAJ

The company’s scope of work includes engineering, fabrication, transportation and installation of about 180 kilometres of rigid pipelines and subsea facilities at water depths of up to 2,000 metres.

The contract also covers the transportation and installation of 38 kilometres of flexible flowlines and jumpers, as well as 54 kilometres of umbilicals.

Fabrication work will be carried out at the Ambriz yard in Angola, with local companies and workers expected to take part in the project.

For the offshore installation campaign, the group plans to deploy its construction vessels FDS and Castorone.

The contract strengthens the company’s presence in Angola, where it has been involved in several offshore energy projects.

New Investment Tests Angola’s Oil Strategy

The project shows how Angola is leaning on deepwater investment to defend its place among Africa’s main crude producers after leaving OPEC in 2024 over output quota disagreements.

Since then, the country has introduced fiscal reforms, revised licensing terms and encouraged investment in mature and offshore assets.

The goal is to attract international capital while keeping production near 1 million barrels per day.