Joint-Venture Partners Contract With Anadarko for Mozambique Area 1
CCS JV, a joint venture between McDermott, Saipem, and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum for the Mozambique Area 1 LNG Development.
The project scope includes the onshore engineering, procurement, and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 mtpa, plus all necessary associated infrastructure, storage tanks, and export jetty facilities.
Saipem’s $6-billion share of the deal is the biggest contract in its history. McDermott's initial portion of the EPC contract award is approximately $2 billion. Chiyoda’s contract amount was not disclosed.
Anadarko and its partners have discovered approximately 75 Tcf of recoverable natural gas resources in Offshore Area 1 since 2010. The company’s final investment decision is expected this month. Mozambique’s president met with Anadarko CEO Al Walker on 7 May and announced plans for Mozambique LNG to announce the final investment decision (FID) during a celebratory event on 18 June in Maputo, Mozambique.
McDermott and Saipem have established a new office in Milan, Italy, where a team from both companies 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 joint venture.
As the operator of Offshore Area 1, Anadarko is the primary project sponsor, but it is not likely to be running the project upon its completion. Occidental Petroleum last month bought the company and as part of the deal, Occidental is expected to sell Anadarko’s African assets, including the LNG project in Mozambique, to Total.
On 3 June, the US Federal Trade Commission granted approval for the proposed $38-billion purchase of Anadarko by Occidental. The deal is expected to close in the second half of 2019.
Additional sponsors include ENH Rovuma Área Um, SA, Mitsui E&P Mozambique Area1 Ltd., ONGC Videsh Ltd., Beas Rovuma Energy Mozambique Limited, BPRL Ventures Mozambique BV, and PTTEP Mozambique Area 1 Limited.
GE Closes Sale of Baker Hughes Shares
As part of a deal that could net up to $3 billion, GE will lose majority control of Baker Hughes just two years after it acquired the oilfield service company.
Nigeria LNG Nears FID on Train 7 Project
After failing to meet a previous 2018 deadline, the owners of the Bonny Island plant say they are close to sanctioning the expansion project following the signing of a letter of intent to a consortium of Saipem Chiyoda and Daewoo for EPC services. Train 7 is expected to add 8 mtpa to Bonny Island’s
ExxonMobil Agrees To Sale of Norwegian Upstream Portfolio
ExxonMobil confirmed an exclusivity agreement with Var Energi for negotiations of a sale that could reach $4 billion, according to Reuters. If it goes through, the deal would make Var Energi the second-largest producer on the Norwegian Continental Shelf.
Don't miss out on the latest technology delivered to your email every two weeks. Sign up for the OGF newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
09 September 2019
09 September 2019
03 September 2019
05 September 2019
03 September 2019