Anadarko Awards Area 1 Contract

McDermott, Saipem and Chiyoda to Deliver EPC

Hydrocarbon explorer Anadarko Petroleum has awarded a joint venture consortium a contract for the development of its Area 1 liquefied natural gas project in Mozambique.

Consortium partners McDermott, Saipem and Chiyoda signed the agreement with Anadarko for onshore engineering, procurement and construction of all components of the onshore LNG project.

"The Area 1 Mozambique LNG project will build on McDermott's industry-leading experience and demonstrate our ability to deliver comprehensive EPC solutions globally for world-scale LNG developments," said Samik Mukherjee, McDermott's Group senior vice president, projects.

Two LNG Trains

Construction will involve two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum, plus associated utilities and infrastructure, and is expected to involved significant breakbulk transport once work begins in late-June.

Project management, engineering and procurement work will be conducted jointly by McDermott and Saipem from a newly established office in Milan, Italy; engineering work will be completed by McDermott from London and Gurgaon, India; while Chiyoda will provide advisory services for the joint venture.

The Area ! project is additionally sponsored by ENH Rovuma, Mitsui E&P Mozambique, ONGC Videsh, Beas Rovuma Energy, BPRL Ventures, and PTTEP.

One of the largest fully integrated EPC providers to the energy industry, McDermott employs 32,000 employees in more than 54 countries. While the total contract value was undisclosed, McDermott reports that its initial portion of the EPC contract is valued at about US$2 billion.

Breakbulk Demand Sharpens

Growing demand for LNG is driving demand for breakbulk operators in Mozambique, with “urgent need” to accelerate project timescales, according to research consultancy Africa House.

"LNG is helping to shape an entirely new era of energy solutions, and McDermott is playing a significant role in this global shift," said Tareq Kawash, McDermott's senior vice president for Europe, Africa, Russia and Caspian
Pressure to complete projects to tight deadlines has resulted in a surge in interest in specialized breakbulk and project cargo services in both Mozambique and other resource rich African countries over the last year.

Headquartered in Italy. Saipem provides onshore and offshore breakbulk transport, drilling services, engineering and installation of pipelines and complex projects worldwide.