TechnipFMC sees $3bn of subsea opportunities in Africa within 24 months

TechnipFMC sees subsea opportunities across Nigeria and Angola totaling between $3bn and $5bn within the next 24 months, the company said during its Q3 2021 earnings conference call. This remains in line with its previous estimate released at the end of Q2.

Angola to the front

The subsea market in the region will be heavily driven by TotalEnergies’ projects in Angola. These notably include the development of the Begonia (Block 17/06) and Cameia (Block 21) fields, with subsea projects values of at least $250m for both. Block 21 is notably the location of one of TotalEnergies’ future production hubs with the pre-FEED for a new floating, production, storage and offloading (FPSO) unit awarded to Yinson earlier this year.

Future subsea projects by TotalEnergies in Angola also include the execution of two subsea tieback projects on producing blocks: Cravo, Lirio, Orquidea and Violeta (CLOV) Phase 3 on Block 17 and the ACCE project on Block 31 (an acronym for the Alho, Cominhos and Cominhos East fields). The latter is expected to be the biggest of the pack, with a value of $500m to $1bn.

Block 17 has been subject to significant subsea activity recently, with the commissioning of Zinia 2 earlier this year and the ongoing execution of Dalia 3 and CLOV 2.

Hawilti’s own research sourced from the Hawilti+ research terminal further shows that Angola will be remaining sub-Saharan Africa’s biggest subsea market in the medium-term. In July 2021, Italian major Eni notably requested expressions of interest for the Agogo full field development on Block 15/06, including the provision of an FPSO system.

“Several new production hubs are in the making offshore Angola while producing blocks have received a series of incentives to develop marginal and satellite fields,” said Mickael Vogel, Head of Research at Hawilti. “Infrastructure-led exploration has also proven a very successful strategy in the country and is expected to continue, especially in Block 15/06 and Block 17.”

A possible recovery in Nigeria

Meanwhile, TechnipFMC sees two projects moving forward in Nigeria that could support the subsea market in the country. One is the development of the Preowei field on OML 130, operated by TotalEnergies and whose field development plan has been approved since 2019. The other one is further development of the Shell-operated Bonga asset on OML 118.

In May 2021, new agreements were executed for OML 118 between the NNPC and contractor parties SNEPCo (Shell), ExxonMobil, Total and NAOC (Eni). However, a big question at the moment remains what future Bonga development project will be approved first: Bonga North or Bonga South-West/Aparo.

Full details on ongoing and future projects offshore Angola and Nigeria are available in the “Projects” section within your Hawilti+ research terminal.

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