Saipem Consortium Signs Letter of Intent for Rovuma LNG Offshore Pre-Front-End Services in Mozambique

en.Wedoany.com Reported - On September 10, a consortium formed by Saipem and Jan De Nul signed a letter of intent with ExxonMobil Moçambique Limitada for the Rovuma LNG Phase 1 offshore engineering, covering limited pre-front-end engineering, procurement and other technical services, with an initial value of approximately EUR 11 million. ExxonMobil signed the letter of intent on behalf of Mozambique Rovuma Venture (MRV), which represents Area 4 partners ENH, China National Petroleum Corporation, Eni, KOGAS and XRG.

The letter of intent corresponds to the development of upstream offshore facilities for Rovuma LNG Phase 1. The project plans to develop the Area 4 offshore natural gas resources through 18 subsea wells and transport the natural gas to the onshore Rovuma LNG liquefaction facility via a subsea pipeline and manifold network.

The EPCI scope of work that the Saipem-Jan De Nul consortium is subsequently expected to undertake includes the gas export pipeline, umbilicals, inter-well flowlines and related subsea infrastructure in shallow-water and deepwater environments. This EUR 11 million work is intended to advance project definition, engineering and procurement preparation, and execution planning.

The formal Rovuma LNG Phase 1 offshore EPCI contract has not yet been awarded. According to Saipem's announcement, the consortium's receipt of the final EPCI contract depends on the Area 4 partners making a positive final investment decision and obtaining the required government and regulatory approvals, with the relevant approval milestones expected to be completed in 2026.

On August 7, the Saipem-led SMDC consortium signed another letter of intent with ExxonMobil for the Rovuma LNG Phase 1 onshore midstream engineering, with members including McDermott, Daewoo Construction and China Petroleum Engineering & Construction Corporation. The letter of intent covers limited pre-front-end engineering and procurement work, with an initial value of USD 32 million; the onshore engineering plan involves the construction of two LNG trains, with a total of 12 modular liquefaction units and a designed annual capacity of approximately 18.6 million tonnes.

This offshore engineering work and the August onshore engineering work belong to different work packages of Rovuma LNG Phase 1. The offshore part is responsible for transporting Area 4 natural gas from 18 subsea wells to the onshore liquefaction facility, while the onshore part undertakes the construction of the natural gas liquefaction facility. The formal contracts for both parts are subject to the preconditions of a final investment decision and government and regulatory approvals.