LNG

Australian engineering company Worley said it was awarded two master service agreements by French major Total to provide specialised services for the Mozambique LNG export project at Pemba on the northern coast of the southeast African nation.

“Under the MSAs, Worley will provide in-and-out of country services, including engineering, consulting and specialist engineering for delivery of onshore and offshore (subsea) facilities,” said Worley.

“The services will support the development of the new LNG facility,” the company added.

Worley said the work would be under its local Mozambique operational division with support from Worley’s global businesses, including the consultancy subsidiary Advisian. 

Syndey-based Worley has already supported the LNG development, located on the Afungi peninsula in Mozambique's Cabo Delgado province, since natural gas was first discovered there in 2010. 

Analysts said Worley was a highly experienced LNG and natural gas contractor, having played a leading role in the build-out of Australia's liquefaction plants.

“We are pleased to continue providing services to the LNG development and to support one of Africa’s largest projects,” said Andrew Wood, Chief Executive of Worley.

“Through the MSAs, we will help Total and its partners in the Mozambique LNG Project meet the world’s changing energy needs,” added Wood.

The French company has already said it planned to expand its Mozambique venture with up to two additional processing Trains, taking the total up to four Trains.

Total is looking  at studies for Train 3 and Train 4 because of the huge feed-gas resources offshore Mozambique.

Total confirmed in October 2019 that it paid $3.9 billion to close the acquisition of Anadarko Petroleum’s 26.5 percent operated interest in the Mozambique LNG project from Anadarko purchaser Occidental Petroleum.

Total had previously reached a binding agreement with Occidental to buy Anadarko’s assets in Africa, including Mozambique, Algeria, Ghana and South Africa.

Patrick Pouyanné, Chairman and Chief Executive of Total, has said that Mozambique LNG was a one-of-a-kind asset that perfectly fitted with the company strategy.

Total plans to work on the strong foundations established by the previous operator Anadarko and its partners.

The project includes the development of the Golfinho and Atum fields located within offshore Area 1 of the Rovuma Basin. 

The plant site has already been cleared near the coastal town of Pemba.

The Rovuma Area 1 contains more than 60 trillion cubic feet of gas resources of which 36 Tcf could be developed for a four-Train plant.

The Area 1 shareholder line-up is now as follows: Total operates Mozambique LNG with a 26.5 percent participating interest alongside Mozambican state-owned energy company ENH (15 percent). 

Japan’s Mitsui owns 20 percent, India’s ONGC Videsh, Bharat  PetroResources and Beas Rovuma Energy each hold 10 percent and Thailand’s PTTEP 8.5 percent.

The Total-led venture is Mozambique’s first onshore LNG plant.

Italian energy company Eni is leading a project for the Coral South floating LNG project from Area 4 resources in the Rovuma Basin. 

It is also planning an onshore venture with ExxonMobil and other stakeholders.

The final investment decision on the Mozambique LNG project was announced by Anadarko in June 2019 and the venture is expected to come into production by the start of 2025.

US energy company Anadarko Petroleum has held talks in Maputo with Mozambique President Felipe Nyusi and outlined plans for a June 18 final investment decision and celebration for Mozambique LNG, even as Anadarko is the subject of a bidding battle between Chevron Corp. and Occidental Petroleum Corp.

Indonesia, the Asian liquefied natural gas producing country, has signed an agreement to receive LNG shipments from the Mozambique export project in the southeast African nation being developed by Anadarko Petroleum of the US.

Anadarko Petroleum Corp. of the US said the joint venture partners developing the onshore LNG export project with feed-gas assets from the Rovuma Basin in Mozambique have signed yet another Sale and Purchase Agreement and this time with a subsidiary of stakeholder Bharat Petroleum Corp. of India.

Thailand’s national energy company, PTT Exploration and Production Public Co, said it would speed up its final investment decision process for its stake in the Mozambique LNG project as it posted annual net profits of 36,202 Thai baht ($1.120 billion), a jump of almost 90 percent on its earnings in the previous year because of higher sales volumes and price.

Anadarko Petroleum has named former BG Group executive Mitch Ingram as Executive Vice President for International, Deepwater and Exploration to lead the US company’s overseas operations and project management, including the Mozambique LNG joint venture in southeast Africa.