McDermott Energy Solutions and its joint venture partner Saipem have each been awarded a letter of intent by ExxonMobil Moçambique, on behalf of the Area 4 partners, covering preliminary engineering and procurement work for the next phase of the Rovuma LNG Phase 1 midstream development.
The award, worth an initial $32 million, goes to the SMDC joint venture, which comprises McDermott as majority shareholder alongside Saipem, Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation. It builds on the front-end engineering design contract the group secured in August 2024 and supports project definition as Area 4 partners work toward a final investment decision expected in 2026; the full EPC contract award remains contingent on that FID and on government and regulatory approvals.
Mozambique Rovuma Venture, comprising ExxonMobil, Eni and China National Petroleum Corporation, operates the Area 4 concession with a 70% interest, while KOGAS, Mozambique’s state firm ENH, and ADNOC’s XRG each hold 10%. The block holds an estimated 85 trillion cubic feet of gas and includes Eni’s producing Coral Sul FLNG, the planned Coral North FLNG, and the ExxonMobil-led Rovuma LNG onshore project, which is designed around 12 modular liquefaction trains with combined capacity of 18.6 million tonnes per year and start-up targeted for 2031.
McDermott chief executive Michael McKelvy said the award builds on the company’s established Mozambique LNG expertise and long-term commitment to the country, while McDermott senior vice president Rob Shaul said the group’s completed FEED work positions it to advance the project into its next phase. Saipem said the letter of intent strengthens its position in the LNG sector on what it called one of the most significant projects currently in global planning. Rovuma LNG is projected to generate about $150 billion in government revenue and add roughly $11 billion a year to Mozambique’s GDP over its 30-year life, while supporting more than 150,000 jobs, according to a Standard Bank macroeconomic study.
Source: offshore-energy.biz, energy-pedia.com
