In the project economics bucket, ExxonMobil has awarded $1.1 billion in pre investment contracts for the Rovuma LNG development in Mozambique. The commitments cover engineering, procurement and manufacturing for subsea production systems, large bore valves and offshore line pipe.
ExxonMobil Moçambique placed the orders for the Area 4 partners, including Empresa Nacional de Hidrocarbonetos, China National Petroleum Corporation, Eni, KOGAS and XRG. OneSubsea received the largest package for subsea systems, controls and umbilicals, while Advanced Technology Valve, Corinth Pipeworks, Sumitomo Corporation of Americas and Zhejiang Jiuli Hi Tech Metals secured pipe and valve work.
Corinth Pipeworks said its award is worth between $200 million and $250 million and covers about 250 kilometers of line pipe weighing 120,000 tons. The pipe will range from 20 inches to 24 inches in diameter and will include corrosion protection and concrete weight coating. Suppliers can now begin work on materials that require specialized equipment and long production schedules.
Rovuma LNG is designed to produce 18.6 million tons of liquefied natural gas per year from Area 4 resources and is expected to cost about $30 billion. Mozambique Rovuma Venture, owned by ExxonMobil, Eni and China National Petroleum Corporation, holds a 70 percent interest, while XRG, KOGAS and Empresa Nacional de Hidrocarbonetos each hold 10 percent. The contract awards advance procurement for one of Africa’s largest proposed LNG developments before final sanction.