MAPUTO, Aug 18 – ExxonMobil has awarded about $1.1 billion in pre-investment contracts for equipment for the first phase of the Rovuma LNG project in Mozambique’s Cabo Delgado province, Exxon said in a statement on Monday, signalling renewed progress on one of the country’s largest proposed gas developments.
The contracts were awarded on behalf of the Area 4 consortium, which includes Mozambique’s state-owned Empresa Nacional de Hidrocarbonetos (ENH), China National Petroleum Corp, Italy’s Eni, Korea Gas Corp and XRG, the energy investment arm of Abu Dhabi National Oil Co.
The agreements cover subsea production systems, large-bore production valves and offshore line pipe. The equipment orders are intended to support engineering and procurement activities as the consortium works towards a final investment decision for the project.
The largest award went to OneSubsea UK and OneSubsea AS for the engineering, procurement, fabrication and manufacturing of subsea production systems, controls and umbilicals. Aker Solutions Mozambique will support the project’s in-country activities.
Other companies receiving contracts include Advanced Technology Valve, Corinth Pipeworks, Sumitomo Corporation of America and Zhejiang Jiuli Hi-Tech Metals.
The latest awards mark another step in the revival of the Rovuma LNG development, which was placed on hold after ExxonMobil declared force majeure in 2021 following escalating security concerns in Cabo Delgado. The company lifted the force majeure in November, reopening the way for project activities to resume.
The Rovuma LNG project is part of Mozambique’s broader effort to develop its substantial natural gas resources and establish the country as a major LNG producer. Progress on the project is closely linked to the security situation in Cabo Delgado, where an Islamist insurgency has disrupted economic activity and delayed major energy investments.
For ExxonMobil and its Area 4 partners, the latest contracts allow key procurement and engineering work to move forward before a final investment decision. For Mozambique, renewed activity could eventually unlock significant investment, industrial opportunities and government revenues from the country’s offshore gas resources.
The timing is also significant for global LNG markets, where new production capacity is being developed to meet long-term demand for natural gas. A successful restart of Rovuma LNG would strengthen Mozambique’s position in the international LNG market while expanding the country’s role in Africa’s energy supply chain.
