Azule Energy, the joint venture between Eni and BP, has declared a Final Investment Decision (FID) for the $5.1 billion Greater PAJ Project, a significant ultradeepwater oil and gas development offshore Angola. This milestone underscores a strategic commitment to boosting Angolan hydrocarbon production and regional energy supply.
The Greater PAJ Project marks Angola's first integrated cross-block development, signaling a coordinated approach to resource management and infrastructure optimization in a key African producing nation. Its approval comes as global energy markets seek diversified supply sources and sustained investment in conventional and unconventional resources.
Executive Summary
Azule Energy, a partnership of Eni and BP, along with Sonangol E&P and Equinor, has sanctioned the Greater PAJ Project, an ultradeepwater development across Blocks 31 and 31/21 offshore Angola. The $5.1 billion investment will target an estimated 252 million barrels of oil reserves and includes a new Floating Production, Storage and Offloading (FPSO) vessel. The project is designed to produce 95,000 barrels of oil per day and export 70 million standard cubic feet of gas daily to the Angola LNG plant, with first oil anticipated in the first half of 2029.
What Happened
On June 22, 2026, Azule Energy announced the Final Investment Decision for the Greater PAJ Project. This decision follows extensive planning by the joint venture partners, including Eni, BP, Sonangol E&P, and Equinor. The project involves developing five offshore fields across two blocks to enhance Angola's oil and gas output.
Key Developments
- Major Investment: The Greater PAJ Project represents a $5.1 billion capital expenditure, highlighting significant commitment to Angolan energy infrastructure.
- Integrated Development: This is Angola's inaugural integrated cross-block development, optimizing resource recovery across Blocks 31 and 31/21.
- Production Capacity: A new FPSO will deliver 95,000 bbl/d of oil and 70 MMscf/D of gas, with gas slated for the Angola LNG facility.
Regional Context
The Greater PAJ Project reinforces Angola's position as a vital energy supplier in sub-Saharan Africa and supports its national strategy for efficient resource management. This development is crucial for sustaining the country's oil production and leveraging its gas resources for LNG exports.
Market Impact
For traders and analysts, the FID signals a firm addition to future global oil and LNG supply, particularly from a stable African producer. The project's gas export to Angola LNG will bolster regional LNG availability, while the new oil capacity will contribute to balancing global crude markets in the latter half of the decade.
Outlook
First oil is expected by mid-2029, with the project poised to significantly contribute to Angola's long-term production profile and global energy security. Further developments in Angola's upstream sector will be closely watched as operators seek to maximize existing infrastructure and unlock new reserves.
