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.
UPDATE: Total Faces $12 Billion Shortfall as it Continues $20 Billion Mozambique LNG Project
Construction on Mozambique LNG stopped in April due to COVID-19, but Total continues work on the project even amid a $12 Billion shortfall. Financing for the Mozambique LNG project follows engineering contracts awarded by Total in the past few months.
India Looking To Store Oil in the US Petroleum Reserve
India may be the second country to lease space in the US SPR. Capacity at the SPR has been building for the past 5 weeks.
Mammoet Awarded Unloading, Transport, Installation Contract for Arctic LNG 2
The contract is Mammoet’s biggest in terms of aggregate tonnage. The Arctic LNG 2 project reached FID in September 2019.
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.
20 May 2020
20 May 2020