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.
Source: Africabusinessinsider