GE Oil & Gas and Eni East Africa sign long-term partnership to develop gas resources offshore Mozambique

Flag map of MozambiqueGE Oil & Gas and Eni East Africa sign long-term partnership to develop gas resources offshore Mozambique. (Image source: Andriyko_UA/Commons)GE Oil & Gas has signed a long-term agreement to collaborate with Eni East Africa (EEA), on the offshore Mozambique developments it operates

Two, five-year contracts signed for subsea production systems, equipment and services for Mozambique offshore development projects, with additional extension options totaling 25 years; orders secured for equipment and services for Coral South FLNG, the first phase of Eni East Africa’s (EEA) development plans for Rovuma basin Area 4 gas resources; agreement sees GE becomes the first subsea supplier in Mozambique and East Africa, unlocking future growth opportunities in the region.

The move underlines GE Oil & Gas’s commitment to expand its global footprint while supporting local investment in Africa and re-affirms its leadership in large bore technology and cutting-edge subsea equipment and services.

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. This was achieved through six months of front end engineering and design (FEED) work, leveraging GE’s in-house engineering capabilities and portfolio of standardized products.

The agreement comprises a multi-year contract to supply subsea production systems, ancillary equipment, and services. It covers the Coral South FLNG project and is the first phase of EEA’s strategically-important development plans for the Rovuma Basin Area 4 gas resources. 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 Oil & Gas has secured orders for the Coral South FLNG from EEA for the supply of seven xmas trees, three 2-slot manifolds with integrated distribution units, MB rigid jumpers, seven subsea wellheads with spare components, a complete topside control system to be installed on the FLNG facility, and associated Services equipment and support including IWOCS and Landing Strings, tools, spares and technical assistance for installation, commissioning and start-up.

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. 

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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