GE Oil & Gas has signed a long-term collaboration deal with Italy’s Eni that includes the provision of subsea equipment for the latter’s multi-billion Coral South liquefied natural gas (LNG) project off Mozambique.
Under the multi-year contract, GE will supply subsea production systems, ancillary equipment and services.
GE signed the deal with Eni East Africa, the operator of Area 4, and owner of 70 percent of the Area 4 concession. Eni holds 71.43 percent in EEA while Chinese CNPC owns the rest.
The new deal covers the first phase of Eni’s development plans for the Rovuma basin Area 4 gas resources and also Area 4 future potential upstream projects.
It includes a separate five-year aftermarket services contract for life of field of the subsea infrastructure, plus one five-year option and five three-year extensions, GE said in a statement on Tuesday.
GE Oil & Gas has secured orders for the Coral South FLNG for the supply of seven xmas trees, three 2-slot manifolds with integrated distribution units, MB rigid jumpers, seven subsea wellheads with spare components and a complete topside control system to be installed on the FLNG facility.
The deal also includes associated services equipment and support including IWOCS and landing strings, tools, spares and technical assistance for installation, commissioning and start-up.
The Coral South FLNG unit will have a capacity of around 3.4 million tons per year.
The Coral field, discovered in May 2012, is located within Area 4 and contains approximately 450 billion cubic meters (16 TCF) of gas in place.
In October 2016, Eni and its Area 4 partners signed an agreement with BP for the sale of the entire volumes of LNG produced by the Coral South project for a period of over twenty years.