A consortium of Saipem and Jan De Nul has signed a letter of intent (LoI) with ExxonMobil for a liquefied natural gas (LNG) development in Mozambique.
The LoI, signed for the first phase of the Rovuma LNG project, includes limited preliminary engineering and procurement and other technical services, aimed at advancing project definition and execution planning, for an initial value of approximately €11 million.
The deal was signed with ExxonMobil Moçambique Limitada, on behalf of the operator Mozambique Rovuma Venture (MRV), representing Area 4 partners Empresa Nacional de Hidrocarbonetos (ENH), China National Petroleum Corporation (CNPC), Eni, KOGAS and ADNOC’s XRG.
The final award of the engineering, procurement, construction and installation (EPCI) contract is subject to the final investment decision (FID) by the Area 4 partners and necessary government and regulatory approvals, expected this year.
The Rovuma LNG Project includes the development of upstream facilities which will deliver gas from the offshore Area 4 resources to the onshore Rovuma LNG liquefaction plant from 18 subsea wells through a network of subsea pipelines and manifolds. Its planned production capacity is 18.6 million tons of LNG per year.
Last month, ExxonMobil awarded $1.1 billion in pre-investment contracts for the engineering, procurement and manufacturing of subsea production systems, large-bore production valves and offshore line pipe for the development.