Saipem-led joint venture scores work on Anadarko’s Mozambique LNG project

Image courtesy of Anadarko

CCS JV, a joint venture between McDermott, Saipem, and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum for work on the Mozambique Area 1 LNG development.

McDermott said on Wednesday that CCS’s project scope included onshore engineering, procurement, and construction (EPC) for all components of two onshore LNG trains with a total capacity of 12.88 million tonnes per annum (MTPA), plus the associated utilities and infrastructure.

The joint venture previously provided front-end engineering design (FEED) services for this LNG development.

According to the company, McDermott’s initial portion of the EPC contract award is approximately $2 billion.

It is worth noting that McDermott and Saipem established a new office in Milan, Italy, where a team from both companies will lead the project management, engineering, and procurement in advance of sharing on-site construction management responsibilities.

McDermott will perform engineering from both London and Gurgaon, India. Chiyoda will only provide advisory services for the joint venture. Work at the site is expected to begin when Anadarko issues a notice to proceed after it makes a final investment decision (FID).

McDermott added that the contract award would be reflected in the company’s backlog once Anadarko approves FID, expected in June 2019.


Saipem deal

Saipem stated in a separate press release that its part of the contract equals around $6 billion. The company will be the leader of the CCS joint venture for the duration of the project.

Work at the site under both contracts is expected to begin when Anadarko issues a notice to proceed after it makes a final investment decision (FID).

Anadarko is the operator of Offshore Area 1, with ENH Rovuma Área Um, Mitsui E&P Mozambique, ONGC Videsh, Beas Rovuma Energy Mozambique, BPRL Ventures Mozambique, and PTTEP Mozambique Area 1 as its partners.

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