A Review of the Nigerian Energy Industry

Anadarko awards Mozambique FEED contracts to JGC, Chiyoda, Bechtel

22 December 2012, Sweetcrude, Houston – US explorer, Anadarko Petroleum has awarded front-end engineering and design, FEED, contracts to three consortiums made up of: a joint venture between JGC Corporation and Fluor Transworld Services; a CB&I-Chiyoda Corporation joint venture; and International Bechtel.

The contracts is for the construction of its onshore liquefied natural gas, LNG, facilities and offshore installation at Area 1 in the offshore Rovuma basin, Mozambique.

Project partner PTT Exploration and Production, PTTEP, of Thailand said the onshore LNG FEED contracts will be performed by three consortiums made up of: a joint venture between JGC Corp and Fluor Transworld Services; a CB&I-Chiyoda Corp joint venture; and International Bechtel.

PTTEP chief executive Tevin Vongvanich said on Friday that the consortiums would deliver a full engineering, procurement and construction plan and confirm a lump sum turnkey price for an initial LNG development for the Area 1 joint venture, comprising two liquefaction trains, each with a capacity of 5 million tonnes per annum of LNG.

The consortiums were also expected to develop an overall LNG park plan that would allow the production of about 50 mtpa of LNG in future years, Tevin added in a statement.

A separate consortium comprised of Technip, a Subsea-7 and Saipem joint venture and a McDermott-Allseas joint venture were awarded the offshore installation FEED contract. This deal includes a full engineering, procurement, installation and commissioning plan for the subsea production systems.

PTTEP said an LNG contractor and an offshore contractor would be selected for the engineering, procurement, construction, installation and commissioning contracts once the development designs and estimated costs are submitted.

Furthermore, Anadarko on Friday signed a heads of agreement with Italian giant Eni to facilitate a joint development programme to conduct offshore activities in Area 1 and Eni’s Area 4 off Mozambique, as well as plan and construct common onshore LNG liquefaction facilities at Cape Afungi, in the country’s northern province of Cabo Delgado.

“Awarding of multiple FEED contracts and reaching an HOA with Eni is a significant step that moves forward the monetisation of the discovered natural gas resources, in addition to the ongoing efforts on securing LNG customers,” Tevin said.

Area 1 is 36.5%-owned and operated by Anadarko, in partnership with Mitsui E&P (20%), BPRL Ventures (10%), Videocon Mozambique Rovuma 1 (10%), PTTEP (8.5%) and Mozambique’s Empresa Nacional de Hidrocarbonetos (15%).

The block has been estimated to contain between 35 and 65-plus trillion cubic feet of recoverable natural gas.

The joint venture is targeting first LNG cargoes in 2018.

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