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GE Oil & Gas wins subsea contract for Eni’s Mozambique offshore projects

GE Oil & Gas wins subsea contract for Eni’s Mozambique offshore projects

Jun 28, 2017
6 min read
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GE Oil & Gas said it has won two, five-year contracts for subsea production systems, equipment and services for Eni’s Coral South floating liquefied natural gas projects offshore Mozambique.

The multi-year contract covers the Coral South FLNG project and is the first phase of Eni East Africa’s (EEA’s) strategically-important development plans for the Rovuma basin Area 4 gas resources, General Electric’s oil and gas unit said in a statement.

The agreement also covers Area 4 future potential upstream projects. It includes a separate five-year aftermarket services contract for Life of Field of the subsea infrastructure, plus one five-year option and five three-year extensions

GE will deliver equipment including seven xmas trees, three two-slot manifolds, rigid jumpers, seven subsea wellheads and a complete topside control system to be installed on the floating liquefaction vessel that will be used to develop the Area 4 field.

The agreement sees GE become the first subsea supplier in Mozambique and East Africa, unlocking future growth opportunities in the region.

“Coral South FLNG is the first major subsea development in East Africa and provides GE Oil & Gas with the opportunity to affirm our leadership in large bore technology and our standardised portfolio of subsea equipment and services for deep water projects,” said Neil Saunders, president and CEO of Subsea Systems & Drilling, GE Oil & Gas. 

“As the only subsea production systems supplier in-country and in East Africa, it provides tremendous opportunities to grow our operations in the region and it further underlines our commitment to drive productivity and cost-efficiency improvements for global projects by building long-term relationships with industry players in place of more outdated transactional approaches.”

Since 2014, teams from GE Oil & Gas and EEA have been co-developing efficient, cost-effective technical solutions to ensure operational reliability and equipment availability to avoid loss of revenue through unplanned downtime. GE said this was achieved through six-months of front end engineering and design (FEED) work.

The Coral South FLNG project, the first phase of EEA’s wider plan of development for the Rovuma basin Area 4, will see the installation of an FLNG facility with a capacity of around 3.4 MTPA, fed by six subsea wells and expected to produce up to 5 TCF of gas, with an anticipated start-up in mid-2022. The first ever deep water project to start producing gas in Mozambique, it will provide significant local economic benefits through job creation and support the region’s future energy needs.

EEA is the operator of Area 4, and holds 70 per cent of the Area 4 Concession. Eni (71.43 per cent) and CNPC (28.57 per cent) are shareholders of EEA.

GE Oil & Gas said it has won two, five-year contracts for subsea production systems, equipment and services for Eni’s Coral South floating liquefied natural gas projects offshore Mozambique.

The multi-year contract covers the Coral South FLNG project and is the first phase of Eni East Africa’s (EEA’s) strategically-important development plans for the Rovuma basin Area 4 gas resources, General Electric’s oil and gas unit said in a statement.

The agreement also covers Area 4 future potential upstream projects. It includes a separate five-year aftermarket services contract for Life of Field of the subsea infrastructure, plus one five-year option and five three-year extensions

GE will deliver equipment including seven xmas trees, three two-slot manifolds, rigid jumpers, seven subsea wellheads and a complete topside control system to be installed on the floating liquefaction vessel that will be used to develop the Area 4 field.

The agreement sees GE become the first subsea supplier in Mozambique and East Africa, unlocking future growth opportunities in the region.

“Coral South FLNG is the first major subsea development in East Africa and provides GE Oil & Gas with the opportunity to affirm our leadership in large bore technology and our standardised portfolio of subsea equipment and services for deep water projects,” said Neil Saunders, president and CEO of Subsea Systems & Drilling, GE Oil & Gas. 

“As the only subsea production systems supplier in-country and in East Africa, it provides tremendous opportunities to grow our operations in the region and it further underlines our commitment to drive productivity and cost-efficiency improvements for global projects by building long-term relationships with industry players in place of more outdated transactional approaches.”

Since 2014, teams from GE Oil & Gas and EEA have been co-developing efficient, cost-effective technical solutions to ensure operational reliability and equipment availability to avoid loss of revenue through unplanned downtime. GE said this was achieved through six-months of front end engineering and design (FEED) work.

The Coral South FLNG project, the first phase of EEA’s wider plan of development for the Rovuma basin Area 4, will see the installation of an FLNG facility with a capacity of around 3.4 MTPA, fed by six subsea wells and expected to produce up to 5 TCF of gas, with an anticipated start-up in mid-2022. The first ever deep water project to start producing gas in Mozambique, it will provide significant local economic benefits through job creation and support the region’s future energy needs.

EEA is the operator of Area 4, and holds 70 per cent of the Area 4 Concession. Eni (71.43 per cent) and CNPC (28.57 per cent) are shareholders of EEA.

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