Anadarko lets contract for Mozambique LNG project

Anadarko Petroleum Corp. has let an engineering, procurement, and construction contract to CCS JV, a joint venture of McDermott International Inc., Saipem, and Chiyoda, for the Mozambique Area 1 LNG Development.

Jun 5th, 2019

Anadarko Petroleum Corp. has let an engineering, procurement, and construction contract to CCS JV, a joint venture of McDermott International Inc., Saipem, and Chiyoda, for the Mozambique Area 1 LNG Development.

The project scope includes the onshore EPC for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 million tonnes/year, plus the associated utilities and infrastructure. The onshore LNG plant—Mozambique’s first—will support Golfinho-Atum field, which lies entirely within Offshore Area 1 where Anadarko and its partners have discovered 75 tcf of recoverable natural gas resources (OGJ Online, Feb. 5, 2019). CCS JV previously provided front-end engineering design services for the development. McDermott’s values its initial portion of the EPC contract at $2 billion.

McDermott and Saipem have established an office in Milan where a team 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 group. Work at the site is expected to begin when Anadarko issues a notice to proceed after it takes a final investment decision, which is expected this month.

Anadarko operates Offshore Area 1 with 26.5% working interest. Partners are ENH Rovuma Area Um SA with 15%, Mitsui E&P Mozambique Area1 Ltd. 20%, ONGC Videsh Ltd. 10%, Beas Rovuma Energy Mozambique Ltd. 10%, BPRL Ventures Mozambique BV 10%, and PTTEP Mozambique Area 1 Ltd. 8.5%.

Supply agreements for the project have currently exceeded 11.1 million tpy, Anadarko said (OGJ Online, May 13, 2019).

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