Anadarko dishes out contract awards for Mozambique LNG development

U.S. oil company Anadarko has awarded a number of contracts for its Mozambique Golfinho/Atum development following a final investment decision for the project. 

The Anadarko-operated Mozambique LNG project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 Mtpa to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

As reported by Offshore Energy Today on Wednesday morning, Anadarko sanctioned the development of Mozambique’s Offshore Area 1 via the Area 1 Mozambique LNG project. The project, estimated at $20 billion, can now move ahead to the construction phase.

Anadarko said that, following the FID, the project expects to soon issue notices to proceed under the terms of the previously executed engineering, construction, procurement and installation contracts and finalize financing.

Following the FID move, Anadarko has awarded contracts for the Company Provided Items (CPI) for the subsea gathering system to TechnipFMC, Oceaneering, Advanced Technology Valve, and Cameron Italy, S.R.L.

Over $1 billion for TechnipFMC & Van Oord

Furthermore, Van Oord in consortium with TechnipFMC has been awarded a contract for the engineering, procurement, construction and installation (EPCI) for the offshore subsea system.

Van Oord said in a statement on Wednesday that the company will execute the shallow offshore installation scope while its consortium partner TechnipFMC is responsible for the deep water scope.

The total contract value for the consortium TechnipFMC and Van Oord is over $1 billion.

In a separate statement on Wednesday, TechnipFMC said it was awarded a major contract by Anadarko for the EPCI of the subsea hardware system for its Mozambique Golfinho/Atum development.

TechnipFMC will execute the offshore installation scope with its consortium partner Van Oord and in cooperation with strategic subcontractor, Allseas.

Van Oord said that the upcoming months will be dedicated to project preparation and execution will start in 2021.

In addition, TechnipFMC has been awarded separate contracts under its wholly owned US incorporated subsidiary FMCTI (FMC Technologies Inc.), to provide subsea hardware in support of well construction and the EPCI scope.

Arnaud Pieton, President Subsea at TechnipFMC, stated: “TechnipFMC will execute its scope utilizing our integrated model (iEPCITM) and will highlight our industry leading subsea capabilities to help maximize Anadarko’s overall project value.”

Further to these awards, TechnipFMC and Allseas have entered into a strategic collaboration agreement aimed at jointly pursuing specific deepwater projects where the assets, products and capabilities of both companies are complementary.

In support of these awards, TechnipFMC is increasing its footprint in Mozambique and opened a new office in Maputo, Mozambique, in February 2019.

Oceaneering’s umbilicals 

Oceaneering has been awarded a contract by Anadarko to supply umbilicals, distribution hardware, and aftermarket services.

According to Oceaneering, the multiple lengths of onshore and subsea steel tube control umbilicals total approximately 115 miles (185 kilometers) in length. The distribution hardware to be provided includes umbilical termination assemblies, hydraulic and chemical distribution units, electrical distribution units, flying leads, junction plates, ROV flyable large-bore connectors, and aftermarket services in support of installation.

Oceaneering said that the manufacture of the umbilicals and distribution hardware is scheduled to occur at its facilities in Panama City, Florida and Houston, Texas; and is expected to start in the third quarter of 2019 and be completed in the third quarter of 2021.

CCS JV

In addition, as reported earlier in June, Anadarko hired a joint venture between McDermott, Saipem, and Chiyoda – named CCS JV – for the onshore part of its Mozambique Area 1 LNG Development in Mozambique.

The joint venture’s scope of work covers the onshore engineering, procurement and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA), plus the associated utilities and infrastructure. Previously, CCS JV provided front-end engineering design (FEED) services for this LNG development.

Saipem, as the leader of the JV, said that its part of the project would bring it $6 billion. McDermott said its initial portion of the EPC contract award was approximately $2 billion.

Offshore Energy Today Staff

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