McDermott, partners bag Rovuma LNG FEED contract

Houston-based McDermott, through a consortium with Italy's Saipem and China Petroleum Engineering and Construction Corporation, has been awarded the front-end engineering design (FEED) contract for the ExxonMobil-led Rovuma LNG project in Mozambique.

McDermott released a statement on Tuesday revealing the FEED award for the Rovuma LNG Phase 1 project, a joint venture between ExxonMobil, Eni, and CNPC.

Last week, France’s Technip Energies and Japan’s JGC also announced the FEED award for the project.

The two joint ventures will compete to win the EPC contract.

The project includes liquefaction and export of natural gas extracted from the Offshore Area 4 fields off the Afungi Peninsula in Mozambique.

McDermott said the FEED contract scope of work 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.

The plant will have an overall production capacity of 18 million tons per annum.

McDermott said the scope of work also includes the engineering, procurement, and construction proposal.

Work on the project will be executed from McDermott’s office in London.

FID expected in 2026

Frank Kretschmer, president of ExxonMobil Mozambique, recently confirmed that the company and its partners have launched the FEED phase, but he did not provide any info regarding the contractors.

“This milestone represents a crucial step towards developing what will become the largest LNG project in Africa and one of the continent’s most substantial investments,” he said.

The partners also stated that this FEED phase is expected to take around 16 months and is the last step before a final investment decision (FID).

Last month, Mozambique’s President Filipe Nyusi announced that ExxonMobil plans to decide on its Rovuma LNG onshore terminal in Mozambique by 2026.

Nyusi met with ExxonMobil’s upstream president Liam Mallon to discuss the onshore LNG project in Cabo Delgado.

MRV operates the deepwater Area 4 block in the Rovuma basin off Mozambique, which would feed the planned LNG export plant on the Afungi peninsula from the Mamba reservoirs.

The joint venture holds a 70 percent interest in the Area 4 exploration and production concession contract.

In addition to MRV, Galp, Kogas, and Empresa Nacional de Hidrocarbonetos each hold a 10 percent interest in Area 4.

ExxonMobil is leading the construction and operation of the liquefaction and related facilities on behalf of MRV, and Eni is leading the construction and operation of the upstream facilities.

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