Page 9 - GLNG Week 44 2021

GLNG AFRICA GLNG

Saipem sees Mozambique LNG

project restarting in mid-2022

PROJECTS & THE Italian energy services group Saipem won the contract in 2019 and is on track to pro-
COMPANIES said on October 28 that it expects work on the vide about $6bn worth of services to TotalEn-
Mozambique LNG project, which was put on ergies and its partners. It was due to carry out
hold this year for security reasons, to restart around €1.4bn worth of work between April
around mid-2022. and December of this year, but it had to suspend
During a conference call with analysts, operations following TotalEnergies’ declaration
Saipem’s CFO Antonio Pacioretti indicated that of force majeure in late March. The total cost of
he did not expect the project to make any sig- The total cost of Mozambique LNG is
nificant contributions to his company’s perfor- expected to reach $20bn. The project calls Mozambique LNG
mance in 2021. As of the end of September 2021, for extracting gas from Area 1, which lies off-
he reported, the Mozambique LNG contract was shore within the Rovuma basin, and using is expected to
still backlogged to the tune of €3.6bn ($4.18bn). it as feedstock for the gas liquefaction plant
This could change next year, though, he stated. that TotalEnergies has started building on the reach $20bn.
Pacioretti did not say whether Saipem had Afungi Peninsula. This facility will eventually
received any guidance from TotalEnergies have two production trains, each with a capacity
(France), which is leading the Mozambique of 6.44mn tpy.
LNG initiative. He noted, though, that the pro- Total E&P Mozambique Area 1, the TotalEn-
ject played an important role in his company’s ergies subsidiary that is acting as operator of
projections for next year. Mozambique LNG, holds a 26.5% stake in the
“In order to reach our revenues target in 2022, project. The remaining equity is divided between
we also have to consider the contribution of two Japanese companies, Mitsui and Japan Oil,
Mozambique,” he was quoted as saying by Reu- Gas and Metals National Corp. (JOGMEC),
ters during the conference call. He did not reveal which have a combined stake of 20%; Mozam-
Saipem’s forecast revenues. bique’s national oil company (NOC) ENH,
The Italian company, through a joint venture with 15%; Bharat Petroleum (India), with 10%;
with Chiyoda (Japan) and McDermott Interna- ONGC Videsh Ltd (OVL, India), with 10%; Beas
tional (US), is serving as the engineering, pro- Rovuma Energy Mozambique (a 60:40 joint ven-
curement and construction (EPC) contractor for ture between OVL and Oil India Ltd, or OIL),
the Mozambique LNG project. The joint venture with 10%; and PTTEP (Thailand), with 8.5%.™

Week 44 05•November•2021 www. NEWSBASE .com P9