ExxonMobil awards $1.1 billion in Rovuma LNG contracts in Mozambique

• Contracts cover subsea production systems, large-bore production valves, and offshore line pipe, with OneSubsea UK and OneSubsea AS receiving the largest award for engineering, procurement, fabrication and manufacturing
• Area 4 partners include Mozambique's state oil company ENH, China National Petroleum Corp, Italy's Eni, Korea Gas Corp, and Abu Dhabi National Oil Co's XRG
• The project has been under force majeure since November following a 2021 operational pause due to security concerns in southern Africa

Summary: ExxonMobil Awards $1.1 Billion in Rovuma LNG Contracts in Mozambique

Key Transaction Details:

ExxonMobil announced Monday it has awarded approximately $1.1 billion in pre-investment contracts for upstream equipment for the Rovuma LNG Phase 1 project in Cabo Delgado, Mozambique. The contracts were awarded on behalf of Area 4 partners, including Mozambique's ENH, China National Petroleum Corp, Italy's Eni, Korea Gas Corp, and Abu Dhabi National Oil Co's XRG.

Contract Scope:

The awards cover critical infrastructure including subsea production systems, large-bore production valves, and offshore line pipe. These contracts are designed to advance the project toward a final investment decision (FID).

Major Contractors:

OneSubsea UK and OneSubsea AS secured the largest contract, encompassing engineering, procurement, fabrication, and manufacturing of subsea production systems, controls, and umbilicals. Aker Solutions Mozambique will provide in-country support. Additional suppliers include Advanced Technology Valve, Corinth Pipeworks, Sumitomo Corporation of America, and Zhejiang Jiuli Hi-Tech Metals.

Project Background:

The development represents a significant milestone following operational challenges. ExxonMobil declared force majeure on the Rovuma LNG project in November after suspending operations in 2021 due to security concerns in the region.

Market Implications:

The substantial contract awards signal renewed confidence in Mozambique's LNG potential despite previous security setbacks. The project involves major international energy players, indicating strong global interest in developing the country's natural gas resources. This investment could enhance Mozambique's position in the global LNG market and represents a critical step toward commercial production.