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PTTEP, Partners Award Mozambique LNG

FEED Contracts
Posted on Dec 21st, 2012 with tags Award, Contracts, Feed, LNG, Mozambique, News, Partners,
PTTEP .

PTTEP AI (a subsidiary of PTTEP) and its joint venture partners have awarded Front End
Engineering Design (FEED) contracts for both onshore LNG (liquefied natural gas)
construction and offshore installation for its newly acquired block “Rovuma Offshore Area
1” in Mozambique which contains the vast natural gas resources discovered currently
estimated to hold between 35 and 65 plus trillion cubic feet of recoverable natural gas.

The competitive Onshore LNG FEEDs will be performed by 3 consortiums comprised of:

1. a joint venture comprised of JGC Corporation and Fluor Transworld Services, Inc.,
2. a joint venture between an affiliated company of CB&I and Chiyoda Corporation, and
3. International Bechtel Co. LTD. which will deliver of a full engineering, procurement and
construction plan, and a lump sum turnkey price for an initial LNG development that will
include two liquefaction trains for the Rovuma Offshore Area 1 joint venture with capacity of 5
million tons of LNG per annum (MMTPA) per train, as well as associated common facilities.
The FEEDs will also develop an overall LNG Park plan allowing the capability to produce
approximately 50 MMTPA in the future years.

The competitive Offshore Installation FEEDs will be performed by another 3 consortiums

comprised of Technip USA, Inc.,

1. a joint venture comprised of Subsea 7 (US) LLC and Saipem SA, and

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2. a joint venture comprised of McDermott, Inc. and Allseas USA Inc. will deliver of a full
engineering, procurement, installation and commissioning plan for subsea production
systems.

Once all of the above designs and estimated costs are submitted, a LNG contractor and an
offshore contractor will be selected and awarded for Engineering, Procurement, Construction,
Installation and Commissioning (EPCIC) contracts to continue advancing the project toward
expected first LNG cargo in 2018.

Moreover, Anadarko, as the operator of Mozambique Offshore Area 1, reached Heads of

Agreement (HOA) with Eni, as the operator of Mozambique Offshore Area 4, establishing
foundational principle for the coordinated development of the common natural gas reservoirs
spanning both areas. The HOA is designed to facilitate a work program whereby the two operators
will conduct separate, yet coordinated offshore development activities, while jointly planning and
constructing common onshore liquefaction facilities in the form of an LNG (liquefied natural gas)
park at Cape Afungi, in Cabo Delgado Province of northern Mozambique.

Mr. Tevin added that “Awarding of multiple FEED contracts and reaching an HOA with Eni is a
significant step that moves forward the monetization of the discovered natural gas resources in
addition to the on – going efforts on securing LNG customers. All joint venture partners are grateful
for the support of ENH and the government of Mozambique and look forward to continue moving
this transformational project toward first production”.

The joint venture partners for Rovuma Offshore Area 1 are PTTEP AI with 8.5%, Anadarko
Mozambique Area 1 Ltd as the operator with a 36.5% interest, Mitsui E&P Mozambique Area 1 Ltd
with 20%, BPRL Ventures Mozambique B.V. with 10%, Videocon Mozambique Rovuma 1 Ltd with
10% and Empresa Nacional de Hidrocarbonetos, ep’s (ENH), Mozambique National Oil Company,
15% interest is carried through the exploration phase.

In August 2012, PTTEP successfully acquired the entire shares of Cove Energy Plc and became
the partner in Rovuma Offshore Area 1 and other petroleum blocks in Mozambique and Kenya
with other joint venture partners. This success marks PTTEP’s significant step into the highly
prolific East Africa hydrocarbon region which will be a vital LNG production base in the future in
order to support the increasing demand of Asian region including Thailand.

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LNG World News Staff, December 21, 2012; Image: Anadarko

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