Africa French LNG & GAS Oil and Gas

Saipem wins $6bn contract for Mozambique LNG construction

Saipem, the Italian energy services company, has won the biggest contract in its history after being awarded a $6bn deal to construct a major liquefied natural gas project in Mozambique.

The contract for Anadarko’s LNG project in the east African country, will see Saipem lead a joint venture with US-based McDermott International and Japan’s Chiyoda Corporation for construction of the site once a keenly anticipated final investment decision is taken.

Executives at Saipem will hope the deal marks a dramatic turnround for a company that was hammered during the oil price slump, with the services industry suffering from over capacity.

Saipem’s shares have lost more than 80 per cent since the $100-a-barrel era ended in 2014, leaving it with a market capitalisation of just $4.7bn. Stefano Cao, Saipem’s chief executive, said the contract was the result of “many years of dedication to this project”.

“With this project, we will strengthen our presence in east Africa, confirming Saipem’s role among the leaders in the LNG market,” Mr Cao added. It is unlikely to be Anadarko running the project upon its completion, however. The US company was bought last month by Occidental Petroleum in one of the biggest oil deals of the last decade, after a close-fought battle with Chevron.

As part of the deal Occidental is expected to sell Anadarko’s African assets, including the LNG project in Mozambique, to France’s Total.

Saipem said the contract consists of the construction of two LNG trains, with a total nameplate capacity of 12.9m tonnes per annum, alongside additional infrastructure for the project such as storage tanks and export jetties.

Source Financial times

Related posts

Importation des véhicules de moins de 3 ans : la décision sera incluse dans la loi de finance de 2020

Meissa Cheikh

Les États-Unis cherchent-ils à évincer le chinois Huawei du marché maghrébin et africain?

Meissa Cheikh

انخفاض مخيف لصادرات الغاز الجزائري

Meissa Cheikh

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More