ExxonMobil Awards USD 1.1 Billion in Pre-FID Equipment Contracts for Rovuma LNG Phase 1

ExxonMobil awarded roughly USD 1.1 billion in early investment contracts for upstream equipment tied to Rovuma LNG Phase 1 in Cabo Delgado, northern Mozambique. The contracts are intended to move the project toward a final investment decision.

The awards were announced on a Monday, and cover subsea production systems, large-bore production valves and offshore pipelines. ExxonMobil placed the orders on behalf of the Area 4 partners.

OneSubsea UK Limited and OneSubsea AS took the largest contract, covering engineering, procurement, fabrication and production work on subsea production systems, controls and umbilicals. Aker Solutions Mozambique, Limitada will support the in-country portion of that scope.

The partner group includes Mozambique's national hydrocarbons company, CNPC, Italy's Eni, Korea Gas Corporation and ADNOC's XRG unit. The joint venture operating the project is formed by ExxonMobil, Eni and CNPC.

ExxonMobil leads construction and operation of all future natural gas liquefaction facilities in the Area 4 deepwater block off the coast of Cabo Delgado. The scheme centres on an onshore LNG plant with planned production capacity of 18.6 million tonnes per year. It draws on gas resources in the Rovuma basin, with ExxonMobil working in partnership with other companies.

Ordering long-lead subsea hardware ahead of sanction is the mechanism that compresses the schedule between an investment decision and first production. Johanna Boothey, ExxonMobil's country lead in Mozambique, said securing the essential equipment positions the project for efficient execution.

Separate awards went to Advanced Technology Valve for engineering, procurement, manufacture, testing and delivery of large-diameter production valves. Corinth Pipeworks Pipe Industry Single Member won work on the manufacture, coating, testing, preservation and storage of submerged arc welded (SAW) line pipe. Sumitomo Corporation of America took the equivalent scope for seamless (SMLS) line pipe. Zhejiang Jiuli Hi-Tech Metals received a contract for mechanically lined pipe (MLP), induction bends, weld overlay products and associated piping systems.

The orders follow ExxonMobil's decision in November to lift force majeure on Rovuma LNG. The company had suspended operations in 2021 over security concerns in the country.

For buyers tracking new liquefaction supply, the scale of the plant is the number that matters: 18.6 million tonnes per year from a single onshore complex. On the host-state side, the project is expected to generate around USD 150 billion in revenues for the Mozambican state across 30 years of operation.

Phase 1 covers exploration activity, infrastructure development and the mobilisation of human resources, according to MMO Noticias. The Secretary of State for Mineral Resources and Energy attended the disclosure and stressed the importance of the investment for the Mozambican economy.