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Anadarko signs contract with Saipem-led JV for work on Mozambique LNG project

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Anadarko signs contract with Saipem-led JV for work on Mozambique LNG project

Anadarko Petroleum Corp. entered into an engineering, procurement and construction contract with a joint venture of Saipem SpA, McDermott International Inc. and Chiyoda Corp. for the Mozambique Area 1 LNG project.

Under the agreement, the joint venture, CCS JV, would work on the onshore engineering, procurement and construction for all components of the project, including two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum, according to a June 5 news release. CCS JV provided front-end engineering design services for the project.

Italy-based Saipem will serve as the leader of the joint venture for the project, according to a separate news release. Saipem said its share of the contract is about $6 billion. McDermott said in its own press release that its initial portion of the contract award is worth $2 billion.

A team from McDermott and Saipem will lead project management, engineering and procurement from a new office in Milan in advance of on-site construction management. Chiyoda will provide advisory services for CCS JV. McDermott will perform engineering work in London and in Gurgaon, India.

Construction of Mozambique Area 1 LNG awaits Anadarko's final investment decision, scheduled for June, after which the company is expected to issue a notice to proceed with work at the site.

The onshore LNG plant is among the assets that Total SA agreed to acquire from Anadarko for $8.8 billion. Under an agreement with Occidental Petroleum Corp., which is taking over Anadarko, Total would acquire Anadarko assets in Mozambique, Algeria, Ghana and South Africa after Occidental closes the acquisition.