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Saipem, McDermott Intl, Chiyoda Corp to develop Mozambique LNG

Tuesday, 11 Jun 2019
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Saipem, an Italy-based engineering, procurement, and construction (EPC) contracting company in a joint venture with America’s McDermott International and Japan-based Chiyoda Corporation, has reached an agreement with Area 1 Concessionaires, a wholly-owned subsidiary of Anadarko Petroleum Corporation for development of Mozambique Area 1 Liquefied Natural Gas (LNG).

The scope of work includes construction, procurement and engineering for all components of the onshore LNG development. This includes two LNG trains with a total nameplate capacity of 12.88 million tpa along with associated infrastructure and utilities.

McDermott’s initial portion of the EPC contract award is around USD two billion. Saipem and McDermott have set up a new office in Milan, Italy, to lead in engineering, procurement and project management. Chiyoda will provide advisory services for the JV.

The construction works are expected to commence once Anadarko issues a notice to proceed after it takes a Final Investment Decision (FID).

Apart from operator of Offshore Area 1, Anadarko is the main project sponsor while other sponsors include Beas Rovuma Energy Mozambique, ENH Rovuma Área Um, BPRL Ventures Mozambique, S A, PTTEP Mozambique Area 1, ONGC Videsh and Mitsui E&P Mozambique Area 1.

 
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