EPC Contract Awarded for Mozambique LNG

Wednesday, June 5, 2019

A joint venture between McDermott, Saipem and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum Corporation for the Mozambique Area 1 Liquefied Natural Gas (LNG) Development, McDermott International announced on Wednesday.

CCS JV’s project scope includes the onshore engineering, procurement and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA), plus the associated utilities and infrastructure. Previously, CCS JV provided front-end engineering design (FEED) services for this LNG development.

McDermott said its initial portion of the EPC contract award is approximately $2 billion.

McDermott and Saipem have established a new office in Milan, Italy, where a team from both companies will lead the project management, engineering and procurement in advance of sharing on-site construction management responsibilities. McDermott will perform engineering from both London and Gurgaon, India. Chiyoda will only provide advisory services for the joint venture. Work at the site is expected to commence when Anadarko issues a Notice to Proceed after it takes a Final Investment Decision (FID).

As the operator of Offshore Area 1, Anadarko is the primary project sponsor. Additional sponsors include ENH Rovuma Área Um, S.A, Mitsui E&P Mozambique Area1 Ltd., ONGC Videsh Ltd., Beas Rovuma Energy Mozambique Limited, BPRL Ventures Mozambique B.V., and PTTEP Mozambique Area 1 Limited.

To date, approximately 75 trillion cubic feet of recoverable natural gas has been discovered in the Offshore Area 1 – the equivalent of a 12 billion barrel oil field – about 40 kilometers offshore, in approximately 1,600 meters water depth.

Mozambique LNG is one of the first subsea developments in Mozambique. The wells to be tied directly to shore via a subsea gathering system capable of handling 2 billion cubic feet on natural gas per day.

Categories: Contracts Energy LNG Engineering Industry News Natural Gas Africa Deepwater

Related Stories

Saipem Agrees $272M Deal to Acquire Deep Value Driller Drillship

Eni Enlists Shearwater for 3D Seismic Survey in Timor Sea

JERA Lifts First LNG Cargo From Barossa Gas Project in Australia

Philippines Makes First Offshore Gas Discovery in Over a Decade

Low Demand, High Supply Keeps Asia LNG Spot Prices Flat

PV Drilling’s Jack-Up Rig Returns to Asia Ahead of April Drilling Ops

Petronas, CNOOC Ink LNG Sale and Purchase Agreement

Yinson Production Cuts First Steel for Vietnam-Bound FSO

Fugro Nets Mubadala Energy’s Deepwater Gas Job in Asia

Eni Expands Asian Footprint with Long-Term LNG Contract in Thailand

Current News

Saipem Agrees $272M Deal to Acquire Deep Value Driller Drillship

DUG Hooks Multi-Client Seismic Reprocessing Survey off Malaysia

MISC, PTSC Extend Ruby II FPSO Operations Offshore Vietnam

Petronas Takes Operatorship of Oman’s Offshore Block 18

Mubadala Hires SLB for Deepwater Drilling Services Offshore Indonesia

Malaysia Offers Nine Exploration Blocks in 2026 Bid Round

Seatrium Unit Launches Arbitration Against Petrobras over FPSO Contract

Transocean-Valaris Tie-Up to Create $17B Offshore Drilling Major with 73 Rigs

Malaysia Oil and Gas Projects Advance with Petronas' PSC and Farm-Out Deals

Vantage Drilling’s Ultra-Deepwater Drillship Heads to India Under $260M Contract

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com