McDermott, Saipem, and CPECC pick up FEED job with ExxonMobil

A consortium, consisting of the U.S.-based McDermott, Italy’s Saipem, and China Petroleum Engineering and Construction Corporation (CPECC), has landed a front-end engineering design (FEED) contract for a proposed liquefied natural gas (LNG) project in the deepwater Area 4 block off the coast of Mozambique.

ExxonMobil and its partners in Mozambique Rovuma Venture (MRV), comprising Eni and the China National Oil and Gas Exploration and Development Company (CNODC), subsidiary of China National Petroleum Corporation (CNPC), are jointly optimizing development plans to reach a final investment decision (FID) for the Rovuma LNG project in the deepwater Area 4 block, which is said to contain more than 85 trillion cubic feet of natural gas.

While MRV holds a 70% interest in the concession, the remaining 30% stake is split evenly between KOGAS, Empresa Nacional de Hidrocarbonetos (ENH), and, as of recently, ADNOC, after it inked a deal to acquire Galp’s 10% interest in May. The partners, which expect to invest tens of billions of dollars in the development of the LNG project, recently disclosed the tender for the FEED contracts, describing the move as the final step before taking the final investment decision, which is expected after around 16 months.

Last week, Japan’s JGC Holdings Corporation and France’s Technip Energies, confirmed the award of FEED work for the concession within the Rovuma supergiant gas basin, which entails the operational Coral Sul FLNG facility, which Technip delivered to Eni in January 2024, the planned Coral North FLNG development, and the Rovuma LNG onshore facilities, with the last two both expected to be sanctioned in 2024/25.

McDermott, through a consortium with Saipem and China Petroleum Engineering and Construction Corporation, has also been awarded a front-end engineering design contract for the Rovuma LNG Phase 1 project in Mozambique, which includes the modular design of a greenfield LNG production facility in Afungi, all associated gas pre-treatment units and the utilities and offsite systems to support the LNG production.

With an overall production capacity of 18 million tons per annum (mtpa), the Rovuma LNG Phase 1 project is perceived to be a significant development opportunity for the country, providing economic growth. The project includes liquefaction and export of natural gas extracted from the offshore Area 4 fields off the Afungi Peninsula in Mozambique. The scope of work also entails the engineering, procurement and construction proposal.

Rob Shaul, Senior Vice President of McDermott’s Low Carbon Solutions business, commented: “LNG helps shape an entirely new era of energy solutions and McDermott plays a significant role in this global shift with more than 60 years of LNG experience. McDermott is well established in Mozambique and can apply this knowledge and experience to continue the country’s industrial, social and economic development.”

While ExxonMobil will lead the construction and operation of all future natural gas liquefaction and related facilities, Eni will continue to lead the Coral floating LNG project and all upstream operations. The Rovuma LNG project is anticipated to develop reliable, affordable energy in the form of LNG and transform the future of Mozambique.

ExxonMobil believes that the discovery of substantial natural gas fields in the deep waters of the Rovuma Basin offshore Mozambique is a game-changer for the country and its people.