ExxonMobil Awards $1.1 Billion Pre-FID Contracts for Mozambique LNG

en.Wedoany.com Reported - On August 17, ExxonMobil, on behalf of the Mozambique Area 4 partners, awarded approximately $1.1 billion in pre-final investment decision (pre-FID) contracts for the Rovuma LNG Phase 1 project, primarily covering the procurement of long-lead upstream equipment and early site activities. The project remains in the pre-FID stage, and this contract value does not represent the total project investment or the full EPC contract value.

The contracts cover the engineering, procurement, and manufacturing of subsea production systems, large-bore production valves, and offshore export pipelines. The largest contract was awarded to OneSubsea UK and OneSubsea AS, with a scope of work including subsea production systems, control systems, and umbilicals, while Aker Solutions Mozambique will undertake a portion of the in-country work in Mozambique.

Other suppliers include Advanced Technology Valve, Corinth Pipeworks, and Sumitomo Corporation of America, responsible for the manufacturing, coating, testing, and storage of large-bore production valves, submerged arc welded pipes, and seamless pipes, respectively. China's Zhejiang Jiuli Hi-Tech Metals Co., Ltd. was awarded a contract for the manufacturing and supply of mechanically lined pipes, induction bends, cladding products, and associated piping systems.

Rovuma LNG is operated by ExxonMobil as the delegated operator for Area 4, with partners including Mozambique's national oil company ENH, China National Petroleum Corporation, Eni, KOGAS, and XRG, a subsidiary of Abu Dhabi National Oil Company. ExxonMobil lifted force majeure on the project in November 2025, after related work had been suspended since 2021 due to security issues in northern Mozambique.

The project's midstream scope entered the early procurement phase on August 10. ExxonMobil awarded a limited notice to proceed for engineering and procurement services to the SMDC consortium, with an initial value of $32 million. The consortium comprises Saipem, McDermott, South Korea's Daewoo E&C, and China Petroleum Engineering & Construction Corporation. The subsequent full EPC contract remains subject to the Area 4 partners reaching a final investment decision and obtaining government and regulatory approvals.

Rovuma LNG Phase 1 plans to build 12 modular liquefaction trains with a combined LNG production capacity of 18.6 million tonnes per year, with startup targeted for 2031. Project partners will continue to work toward a final investment decision in 2026, at which point the execution arrangements for the main construction works and the full EPC contract will be determined.