KBR, Daewoo win Eni FLNG FEED

KBR, Inc. announced today that the KD Consortium, consisting of KBR and Daewoo Shipbuilding & Marine Engineering Company, Ltd, has been awarded a front end engineering design (FEED) contract by Eni East Africa SpA for a floating liquefied Natural Gas (FLNG) facility for the Coral South Development Project located in Mozambique.

With the award, the KD consortium will be one of three consortia competing for the engineering, procurement, construction, installation and commissioning (EPCIC) contract to build the new floating LNG facility for Eni East Africa and its partners to develop the hydrocarbon discovery in the Rovuma Basin in Mozambique.

Only one consortium will be chosen to take the project to the EPCIC phase. Three important milestones of this combined FEED-EPCIC competition are:

1) FEED activities started in May 2014.
2) FEED completion date is set to be end of April 2015.
3) EPCIC offer submission is foreseen by end of May 2015.

“Developing a cost-effective solution for the first FLNG vessel in Mozambique was the rationale for developing the KD consortium,” said Stuart Bradie, KBR President and CEO. “The consortium allows us to leverage the strength of both companies to provide the client the best choice for the EPCIC portion of the project.”

The KD Consortium will provide the FEED for the Topsides, Hull and Subsea for the Floating LNG facility. The Topsides and Turret are being designed in KBR’s Leatherhead office while the hull and marine system are being engineered in DSME’s facility in Seoul, South Korea.

The FLNG facility will be a turret moored double-hull floating vessel, on which gas receiving, processing, liquefaction, and offloading facilities will be mounted together with LNG and condensate storage.

Eni’s Coral South Development Project is located in the deep waters of the Rovuma Basin, which straddles Mozambique’s Northern border with Tanzania. Coral South is situated approximately 150 miles northeast of Pemba and 30 miles from the Mozambique coast.

Expected revenue from the contract will be included in the third quarter 2014 backlog of unfilled orders for the Hydrocarbons segment. The contract value was not disclosed.

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