Page 13 - AfrOil Week 18 2020
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PROJECTS & COMPANIES
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MOZAMBIQUE
FRANCE’S Total has chosen Texas-based W-Industries as its contractor for subsea sup- port services related to the non-downstream components of the $20bn Mozambique LNG project.
W-Industries said in a statement last week that it had been awarded the contract by Total E&P Mozambique Area 1, a subsidiary of the French major. It did not disclose the value of the deal, but it did say that it would be respon- sible for the engineering, manufacturing, auto- mation, integration and testing of the subsea equipment that Total E&P Mozambique Area 1 will use to develop Gol nho, one of the nat- ural gas-bearing areas within the o shore Area 1 licence.
To this end, the statement explained, W-In- dustries will supply two onshore subsea sup- port equipment modules (OSSEMs) to Total E&P Mozambique Area 1. ese modules will include integrated electrical and instrumen- tation buildings, an MEG injection system, a methanol injection system, a subsea produc- tion hydraulic power unit and an independent chemical injection skid with a fully integrated local process control and safety system, it said.
Donnie Smith, CEO of W-Industries, called the contract a “significant milestone” for his company. “Through the combination of our core products, advanced engineering capabil- ities and process automation expertise, we are able to deliver a fully integrated, turn-key mod- ule in support of the Mozambique LNG project,” he commented.
New sub-contractor
In related news, Total’s main contractor for the construction of the Mozambique LNG plant struck an agreement a 50:50 joint venture formed by Mota-Engil (Portugal) and Besix (Belgium). Mota-Engil unveiled the deal last week, saying that the venture had won a contract
worth $365mn from CCS, an alliance formed by Chiyoda (Japan), McDermott (US) and Saipem (Italy).
e contract calls for Mota-Engil and Besix to build a pier bridge and an o -loading facil- ity for the gas liquefaction plant that will use gas from Gol nho and other sections of Area 1 as feedstock. e partners hope to begin work before the end of June and will take 32 months to nish construction.
Total E&P Mozambique Area 1 has a 26.5% stake in Mozambique LNG and serves as oper- ator of the project. e remaining equity is split between Mitsui (Japan), with 20%; Bharat Petro- leum (India), with 15%; Beas Rovuma Energy Mozambique (a 60:40 joint venture between ONGC Videsh Ltd (OVL) and Oil India Ltd, or OIL), with 10%; Mozambique’s national oil company (NOC) ENH, with 10%; and PTTEP ( ailand), with 8.5%.
e partners have said they hope to begin extracting gas at Area 1 in 2024. ey will pro- cess gas from the site at an onshore facility that will have two production trains, each with a capacity of 6.44mn tonnes per year (tpy). e plant will be Mozambique’s only onshore gas liquefaction facility.
Area 1 lies offshore Mozambique (Image: Total)
Invictus also said in a separate press release that it had raised the equivalent of AUD440,000 ($283,798) under a binding share subscription agreement with Mangwana Opportunities Fund, a strategic institutional investor based in Zimbabwe. e placement proceeds will be used to fund preparations for development work at the Cabora Bassa licence area, it explained.
e Australian company has an 80% stake in a block known as Special Grant 4571, which lies within the Cabora Bassa Basin. e block includes two elds known as Muzarabani and
Msasa, and it may hold as much as 9.25 trillion cubic feet (261.94bn cubic metres) of natural gas and 294mn barrels of gas condensate in gross mean unrisked reserves. Muzarabani appears to be the larger of the two elds, with 8.2 tcf (232.2 bcm) of gas and 250mn barrels of condensate, while Msasa may hold 1.05 tcf (29.73 bcm) of gas and 44mn barrels of condensate.
Invictus hopes to begin drilling its rst test well at Muzarabani soon. It expects to spend $15-20mn on the drilling project and will sink the well to a depth of 3,500-4,000 metres.
W-Industries to provide subsea support services to Mozambique LNG
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