ExxonMobil has, on behalf of its partners, awarded $1.1 billion in pre-investment contracts for the engineering, procurement and manufacturing of subsea production systems, large-bore production valves and offshore line pipe for a liquefied natural gas (LNG) development in Mozambique.
ExxonMobil Moçambique awarded the contracts on behalf of the Area 4 co-venturers Empresa Nacional de Hidrocarbonetos (ENH), China National Petroleum Corporation (CNPC), Eni, KOGAS and ADNOC’s XRG, for the Rovuma LNG project, estimated to cost around $30 billion.
For the project’s Phase 1, the largest contract was awarded to OneSubsea UK Limited and OneSubsea AS, with in-country work to be supported by Aker Solutions Mozambique, for engineering, procurement, fabrication and manufacturing services related to subsea production systems, controls, and umbilicals.
Furthermore, Advanced Technology Valve has been selected for the engineering, procurement, fabrication, testing and delivery of large bore production valves, Corinth Pipeworks for the manufacture, coating, testing, preservation and storage of submerged arc welded (SAW) line pipe, Sumitomo Corporation of Americas for the manufacture, coating, testing, preservation and storage of seamless (SMLS) line pipe, and 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.
According to ExxonMobil, the contracts will enable suppliers to begin fabricating and manufacturing materials requiring significant quantities and specialized equipment with extended delivery schedules.
“These contract awards represent another important step forward for the Rovuma LNG project and reflect the strong commitment of the Area 4 co-venturers to responsibly develop Mozambique’s world-class natural gas resources,” said Johanna Boothey, Lead country manager at ExxonMobil Mocambique. “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.”
In a separate announcement, Greece’s Corinth Pipeworks reported that it would manufacture approximately 250 kilometers (120,000 tons) of longitudinally submerged arc welded (LSAW) linepipe ranging from 20-inch to 24-inch diameter for the project’s offshore pipeline network, including anti-corrosion coating and concrete weight coating scopes, with production taking place in Thisvi.
The award is valued at between $200 million and $250 million.
Corinth Pipeworks’ General Manager Ilias Bekiros said: “We are proud to be selected for the Rovuma LNG Project, one of the most significant energy developments currently underway worldwide. This award reflects the confidence that leading energy operators place in Corinth Pipeworks’ technical capabilities, manufacturing excellence and ability to successfully execute complex offshore projects. It further reinforces our position as a trusted partner for critical energy infrastructure on a global scale.”
The Rovuma LNG Project includes the development of offshore gas resources in Area 4 and an onshore LNG facility with a planned production capacity of 18.6 million tons of LNG per year.
Mozambique Rovuma Venture (MRV), operator of the Area 4 block in the Rovuma Basin, is an incorporated joint venture owned by ExxonMobil, Eni, and CNPC. It holds a 70% participation interest in the concession contract alongside partners XRG, Kogas and ENH, each holding a 10% stake.
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