GE Oil & Gas (NYSE: GE) has expanded its relationship with Eni East Africa (EEA), which is developing the Coral South floating LNG (FLNG) project offshore Mozambique, by signing a long-term agreement for subsea equipment and services.
Eni and CNPC are the shareholders of EEA, respectively holding 71.43% and 28.57% interests.
As part of the multiyear contract GE will supply subsea production systems, ancillary equipment and services for Phase 1 of the natural gas project in Rovuma Basin’s Area 4. The project, scheduled for startup in mid-2022, includes an FLNG facility with a capacity of about 3.4 mpta and is fed by six subsea wells. The development is expected to produce up to 142 Bcm (5 Tcf) of gas.
The contract, which also covers future potential upstream projects in Area 4, includes a separate five-year aftermarket services contract for life of field of the subsea infrastructure with one five-year option and five three-year extensions.
“As the only subsea production systems supplier in-country and in East Africa, it provides tremendous opportunities to grow our operations in the region,” Neil Saunders, president and CEO of subsea systems and drilling for GE Oil & Gas said in the release, “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improvements for global projects by building long-term relationships with industry players in place of more outdated transactional approaches.”
GE Oil & Gas has secured orders for the Coral South FLNG project from EEA for the supply of seven christmas trees, three two-slot manifolds with integrated distribution units, 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. This includes intervention workover control systems, landing strings, tools, spares and technical assistance for installation, commissioning and startup, the release said.
Holding a 70% stake, EEA is the operator of the Area 4 Concession.
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