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GE Oil & Gas has signed a multi-year contract to deliver subsea production systems, ancillary equipment and services to Eni East Africa's (EEA) fields in offshore Mozambique.

Covering the Coral South FLNG project, this deal is the first phase of EEA’s important development plans for the Rovuma basin Area 4 gas resources. 

The agreement also comprises Area 4 future potential upstream projects, alongside a separate five-year aftermarket services contract for life of field of subsea infrastructure, in addition to one five-year option and five three-year extensions.

GE Oil & Gas will deliver three two-slot manifolds with integrated distribution units, MB rigid jumpers, seven subsea wellheads with spare components, and a complete topside control system, which will be installed on the FLNG facility.

In addition, it will provide technical assistance for installation, commissioning and start-up. 

GE Oil & Gas president and CEO of subsea systems and drilling Neil Saunders said: "Coral South FLNG is the first major subsea development in East Africa and provides GE Oil & Gas with the opportunity to affirm our leadership in large bore technology and our standardised portfolio of subsea equipment and services for deepwater projects. 

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"It provides tremendous opportunities to grow our operations in the region."

"As the only subsea production systems supplier in-country and in East Africa, it provides tremendous opportunities to grow our operations in the region and it further underlines our commitment to drive productivity and cost-efficiency improvements for global projects by building long-term relationships with industry players in place of more outdated transactional approaches." 

GE Oil & Gas president and CEO of Sub-Saharan Africa Ado Oseragbaje said: “With the award of this project in Mozambique following the recent OCTP Project in Ghana, with first oil delivered ahead of schedule and in record time-to-market, GE reaffirms its subsea leadership in Africa, operating in all the major oil basins and with all international and national oil companies.

“GE is committed to building capacity in Africa and with the Mozambique project, like we have already demonstrated in Nigeria, Angola and Ghana, we will continue to invest in the years to come, developing a local highly skilled and motivated workforce.”

The Coral South FLNG project will be installed with an FLNG facility having a capacity of around 3.4Mtpa, and fed by six subsea wells with expected production of up to five trillion cubic feet of gas after an anticipated start-up in mid-2022.

An operator of Area 4, EEA holds 70%% stake in the Area 4 Concession. 

Eni has 71.43% stake in EEA and CNPC holds 28.57% share.