LNG

French energy major Total said second-quarter adjusted net income dropped 19 percent to $2.88 billion from $3.55Bln in the same three months of 2018 in results offset by a more than doubling of liquefied natural gas sales and the acquisition of Mozambique LNG assets from Occidental Petroleum.

Total said second-quarter LNG sales more than doubled to 8.5 million tonnes from 3.9MT in the same three months a year ago.

First-half LNG sales came to 16.2MT versus 7.7MT in the first half of 2018.

The company said that while gas prices fell sharply there was an increase in LNG sales.

“Compared to the second quarter of 2018, operating cash flow before working capital changes increased by 77 percent, driven by a doubling of LNG sales,” said Total.

“Total LNG sales more than doubled compared to last year for the second quarter and first half 2019 thanks to the start-up of Yamal LNG Trains 2 and 3 in Russia, Ichthys LNG in Australia, the first Cameron LNG Train in the US and the acquisition of the portfolio of LNG contracts from Engie in 2018,” explained Total.

Total also stated that its signing of an agreement with Occidental Petroleum of the US to acquire Anadarko Petroleum’s assets in Africa, including its LNG stake in Mozambique, would capitalize on the French company’s strengths.

“In Mozambique, it leverages its expertise in LNG, in Ghana, the deep offshore and, in Algeria, its historic presence,” said Chairman and Chief Executive Patrick Pouyanné.

“The Group continues to grow in LNG with the signing of a sales contract with the Chinese company Guanghui, the takeover of Toshiba’s LNG portfolio (Freeport LNG) and the start-up of Cameron LNG,” added Pouyanné.

“This strategy is complemented by the divestments such as the recent sale of mature assets in the UK North Sea,” stated the CEO. 

TechnipFMC, the Franco-US energy and liquefied natural gas engineering company, said it was awarded a number of subsea contracts by Anadarko Petroleum, the licence holder of the Area 1 Rovuma Basin feed-gas resources for the Mozambique onshore LNG project.

The TechnipFMC contracts focus on the development of reserves in the Golfinho-Atum fields offshore the southeast African nation.

TechnipFMC was awarded a major contract for the engineering, procurement, construction and installation (EPCI) of the subsea hardware system through its wholly owned United Arab Emirates-incorporated subsidiary, Technip Middle East FZCO.

The company gave no specifics on the value of the Mozambique contract save to say it was worth more than $1 billion.

The onshore Mozambique project will have phase one output of almost 12.9 million tonnes per annum of LNG from two liquefaction Trains, as well as all necessary associated infrastructure, storage tanks and export jetty facilities.

Anadarko is proceeding with its Mozambique LNG commitments after agreeing earlier in 2019 to be taken over by US peer Occidental Petroleum, while its LNG assets will be sold to French major Total.

The TechnipFMC award followed the granting in May 2019 of the onshore engineering, procurement and construction contract valued at around $6 billion to a consortium comprising Saipem of Italy and its main partner McDermott International of the US, while Chiyoda Corp. of Japan will fill an advisory role.

The TechnipFMC subsea work will be carried out in cooperation with offshore vessel and platform owner and consortium partner Van Oord of the Netherlands and its Mideast subsidiary in cooperation with another European-based subcontractor, Allseas.

In support of these awards, TechnipFMC is increasing its presence in Mozambique and has had a new office in the capital Maputo since February 2019.

TechnipFMC has also been awarded separate contracts under its wholly owned US incorporated subsidiary, FMC Technologies Inc., to provide subsea hardware in support of well construction.

“We are extremely pleased to have been selected for the majority of the Mozambique LNG subsea scope,” said Arnaud Pieton, President of the Subsea division at TechnipFMC.

“TechnipFMC will highlight our industry leading subsea capabilities to help maximize Anadarko’s overall project value,” added Pieton.

“This award is a testament of our 25-year partnership with Anadarko and will further expand our presence in Mozambique,” he said.

Anadarko is still operator of the Mozambique project until the Occidental deal is completed and has a 26.5 percent stake and operatorship of the Area 1 reserves that underpin the LNG venture.

Other shareholders in the Area 1 licence and LNG project include the Japanese trading house Mitsui & Co. and three Indian companies, Bharat Petro Resources, ONGC Videsh and Oil India Ltd., as well as Thailand’s national energy company PTTEP and the Mozambique state-owned oil and gas firm ENH.