McDermott and Saipem, through their SMDC joint venture, have received a letter of intent from ExxonMobil for limited preliminary engineering and procurement services supporting the Rovuma LNG Phase 1 development in Mozambique’s Area 4 block, the companies said on Thursday.
The award was made by ExxonMobil on behalf of Area 4 partners to McDermott Energy Solutions, which is a majority shareholder alongside Saipem in the SMDC joint venture with Daewoo Engineering and Construction and China Petroleum Engineering and Construction. The work will support project definition and planning as the Area 4 partners progress towards a final investment decision expected in 2026.
Rovuma LNG’s onshore development is expected to comprise 12 modular liquefaction modules with a combined production capacity of 18.6 million tonnes per year of LNG, with start-up is anticipated in 2031.
“Our experience on Mozambique LNG, combined with our long-term commitment to the country, positions us to deliver critical infrastructure that supports Mozambique’s emergence as a major global LNG supplier,” said Michael McKelvy, McDermott CEO and board chair.
McDermott previously carried out FEED work for Rovuma LNG.
Engineering of the inside battery limits and liquefaction modules will be handled at McDermott’s London and Gurgaon offices, while project management personnel will be seconded to the joint venture team in Milan.
Rovuma LNG is expected to generate approximately USD 150 billion in revenues for the government of Mozambique over the project’s 30-year life. A Standard Bank macroeconomic study found that the ExxonMobil-led project could also add around USD 11 billion annually to Mozambique’s GDP and employ more than 150,000 people.