The US oil and gas company ExxonMobil has announced the award of contracts worth about 1.1 US billion dollars in pre-investment for critical long-lead upstream equipment, supporting the first phase of the development of Rovuma LNG project, in the northern Mozambican province of Cabo Delgado.
ExxonMobil is leading the construction and operation of all future natural gas liquefaction and related facilities for the Area 4 deep water block off the Cabo Delgado coast. The project is operated by a joint venture owned by ExxonMobil, the Italian energy company ENI, and CNPC of China.
The project is expected to deliver approximately 150 billion dollars in revenues to Mozambican State over its 30-year operating life. The project includes the development of significant offshore gas resources in Area 4 and an onshore LNG facility with a planned production capacity of 18.6 million tonnes of LNG per year.
In a statement, the ExxonMobil revealed that the award marks a significant milestone in the continued advancement of the Rovuma LNG project and demonstrates the Area 4 co-ventures’ commitment as they progress toward a final investment decision (FID).
According to the company, the contracts include the engineering, procurement, and manufacturing of subsea production systems, large bore production valves, and offshore line pipe.
“By securing critical long-lead equipment, we are positioning the project for efficient execution and supporting the long-term economic potential of this strategic investment for Mozambique”, said Johanna Boothey, ExxonMobil manager in Mozambique, cited in the document.
The document points out that the largest contract was granted to “OneSubsea UK Limited and OneSubsea AS, with in-country work to be supported by Aker Solutions Mozambique, Limitada, for engineering, procurement, fabrication and manufacturing services related to subsea production systems, controls, and umbilicals.”
The document adds that the additional contracts were awarded to “Advanced Technology Valve for the engineering, procurement, fabrication, testing and delivery of large bore production valves; Corinth Pipeworks Pipe Industry Single Member for the manufacture, coating, testing, preservation and storage of submerged arc welded (SAW) line pipe; Sumitomo Corporation of America for the manufacture, coating, testing, preservation and storage of seamless (SMLS) line pipe.
A contract was also awarded to Zhejiang Jiuli Hi-Tech Metals for the manufacture and supply of mechanically lined pipe (MLP), induction bends, weld overlay products and associated line pipe systems.
“Awarding these contracts before FID optimizes project execution timelines and helps ensure the availability of critical infrastructure. These contracts will enable suppliers to begin fabricating and manufacturing materials requiring significant quantities, and specialized equipment with extended delivery schedules”, reads the statement.
