Offshore Area 1 is located within the Rovuma Basin

A joint venture of Saipem, McDermott International and Chiyoda has secured an EPC contract from Anadarko Petroleum for the onshore Mozambique Area 1 Liquefied Natural Gas (LNG) Development (Mozambique Area 1 LNG project).

With a $6bn contract share, Saipem will operate as leader of CCS JV, which is incorporated in Italy to implement the project, while McDermott’s initial portion of the EPC contract award is around $2bn. Chiyoda’s contract share has not been disclosed.

Saipem chief executive officer Stefano Cao said: “After many years of dedication to this project, we are very happy to announce that we have reached full agreement for the contract. We congratulate Anadarko and its co-venturers for the achievement and grateful for the confidence demonstrated toward our CCS JV.

“With this project, we will strengthen our presence in East Africa, confirming Saipem’s role among the leaders in the LNG market for the energy transition. A project of such a scale will contribute significantly to the economic growth of Mozambique as a new pole in the west-east energy routes and, as Saipem, we are proud of our substantial contribute to these future developments.”

The project is executed by Anadarko Moçambique Area 1, a fully owned subsidiary of Anadarko Petroleum.

Anadarko Petroleum operates Offshore Area 1 and serves as the frontrunner of the venture, which includes other players such as ENH Rovuma Área Um, Mitsui E&P Mozambique Area 1, ONGC Videsh, Beas Rovuma Energy Mozambique, BPRL Ventures Mozambique, and PTTEP Mozambique Area 1.

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This LNG project involves the construction of two natural gas liquefaction (LNG) trains, with a total nameplate capacity of 12.88 million tonnes per annum (Mtpa). It also includes the construction of storage tanks, export jetty facilities and other infrastructure.

“We will strengthen our presence in East Africa, confirming Saipem’s role among the leaders in the LNG market for the energy transition.”

McDermott and Saipem have established an office in Italy to execute the project. McDermott will perform engineering from both London, UK, and Gurgaon, India, while Chiyoda will provide advisory services for the JV.

The EPC contract is subject to proceed upon Anadarko’s issuance of a notice to proceed following a final investment decision (FID), which is expected this month.

Earlier, CCS JV provided front-end engineering design (FEED) services for this LNG development project.