Saipem, in partnership with Jan De Nul, has entered into a letter of intent (LoI) with ExxonMobil Moçambique for a contract related to phase one of the Rovuma liquefied natural gas (LNG) project offshore Mozambique.
The arrangement, made on behalf of Mozambique Rovuma Venture, covers early engineering, procurement and technical services valued at around €11m.
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Mozambique Rovuma Venture, a joint venture between Eni, ExxonMobil and the China National Petroleum Corporation (CNPC), holds a 70% stake in the project.
The remaining interest is divided equally among ADNOC’s subsidiary XRG, KOGAS and Empresa Nacional de Hidrocarbonetos, each with a 10% share.
Under the terms of the LoI, Saipem and Jan De Nul will carry out preliminary work to help define and plan the execution of the Rovuma LNG phase one development.
The final contract for engineering, procurement, construction and installation is contingent on a positive final investment decision (FID) by Area 4 partners, as well as government and regulatory approval. These decisions are anticipated this year.
The Area 4 partners are Empresa Nacional de Hidrocarbonetos (ENH), CNPC, Eni, Korea Gas Corporation (KOGAS) and XRG.
The Rovuma LNG project aims to deliver natural gas from Area 4’s offshore resources to an onshore processing facility via an 18-well subsea network. This infrastructure includes a system of pipelines and manifolds designed to transport gas for liquefaction.
The consortium’s scope of work would cover subsea facilities such as export pipelines, umbilicals and flowlines in both shallow and deepwater environments.
The Rovuma LNG plant is designed for a production capacity of 18.6 million tonnes per annum (mtpa) of LNG, with associated gas resources of 2.4 billion cubic metres.
The development plan for phase one was submitted in July 2018 and approved in May 2019.
Commercial operations are set to commence in 2031.
Last month, ExxonMobil Mocambique issued an LoI to McDermott Energy Solutions (UK) covering limited engineering and procurement services for the continuation of the Rovuma LNG phase one project.
