ExxonMobil has chosen the Americans from McDermott to work as a consortium to prepare the engineering design for the natural gas production megaproject in Mozambique, to be completed next year, ahead of the final investment decision (FID).
Final Investment Decision (FID) is a crucial milestone in the development of a major project, especially in industries like energy, infrastructure, and large-scale construction. It represents when a company or investor commits significant financial resources to proceed with the project’s execution.
According to information from the US consultancy, which Lusa saw today, McDermott was chosen to lead the consortium also made up of Saipem and China Petroleum Engineering and Construction Corporation, with up to 16 months to complete the technical and engineering design, known as FEED (Front End Engineering Design), of the Rovuma LNG project.
“The Rovuma LNG Phase 1 project represents a significant development for the country and provides a significant opportunity for economic growth. The project includes the liquefaction and export of natural gas extracted from the offshore Area 4 fields off the Afungi peninsula in Mozambique [Cabo Delgado],” according to a statement from Houston-based McDermott, consulted today by Lusa.
The project’s updated design involves the production of 18 million tonnes per year (MTA), made up of 12 modules of 1.5 MTA each, according to ExxonMobil.
“This milestone represents a crucial step in the development of the Rovuma LNG project, signalling Area 4″s commitment to excellence and innovation in the oil and gas sector,” says a statement from ExxonMobil, which will also ensure the construction of associated onshore facilities, on behalf of Area 4’s operator, Mozambique Rovuma Venture (MRV).
In addition to ExxonMobil, the consortium also includes Italy’s Eni and China’s China National Petroleum Corporation (CNPC), which hold a % stake in the Area 4 Exploration and Production Concession Contract.
The vice-president of the US oil company, Walter Kansteiner, said on 23 September in New York, after meeting with the Mozambican President, that ExxonMobil expects to complete the technical design of this project within a year.
“We’ve announced our FEED – Front End Engineering Design, our front end engineering and design [of the project], and that takes about a year. So we’re looking forward to progress on FEED in the next 12 or 13 months,” said ExxonMobil’s vice-president for external relations, speaking to journalists after the meeting with Filipe Nyusi.
Exxon’s project in Cabo Delgado—a northern province affected by terrorist attacks for almost seven years—was initially expected to produce 15.2 million tonnes of gas a year, but this has since been revised to 18 million tonnes.
Mozambique’s president has previously said that ExxonMobil did not expect to make a decision on the natural gas extraction project in northern Mozambique until 2026.
The head of state, who received the president of ExxonMobil Upstream, Liam Mallon, in Maputo on 14 August, explained at the time that he had discussed with the head of the US oil company “progress on the LNG project” in the Rovuma basin.
“We focused our discussions on the initial engineering phase of the project, now with plans to finalise approvals and take the Final Investment Decision by 2026. With significant progress, it has been reiterated that this project will be one of the least polluting initiatives with all the potential for a promising future in the liquefied natural gas sector,” explained Nyusi.
ExxonMobil’s general manager in Mozambique, Arne Gibbs, had said on 3 May that a decision on the investment could be made by the end of 2025.
The Rovuma LNG project will be “the largest liquefied natural gas project in Africa, and could be the largest project in African history,” Gibbs added.
Mozambique has three development projects approved to exploit the natural gas reserves of the Rovuma basin, classified among the largest in the world, off the coast of Cabo Delgado, including one by TotalEnergies, still suspended due to security issues, also on the Afungi peninsula.
Source: Lusa
