KD consortium wins Eni FLNG FEED

October 16, 2014

Eni East Africa SpA awarded the KD consortium, consisting of KBR Inc. and Korea’s Daewoo Shipbuilding & Marine Engineering (DSME), a contract for a front end engineering design (FEED) for a floating liquefied natural gas (FLNG) facility for the Coral South development project located in Mozambique.

DSME shipyard. From DSME.
 

The KD consortium will provide the FEED for the topsides, hull and subsea for the FLNG facility. The topsides and turret are being designed in KBR’s Leatherhead office. The hull and marine system are being engineered in DSME’s facility in Seoul, South Korea. 

The FLNG facility will be a turret moored double-hull floating vessel, on which gas receiving, processing, liquefaction, and offloading facilities will be mounted together with LNG and condensate storage.

According to KBR, only one consortium will be chosen to take the project to the EPCIC phase in which FEED activities began in May 2014. Completion for the FEED is scheduled for April 2015 and EPCIC offer for submission is expected by the end of May 2015.

KBR says that with this award, the KD consortium will be one of three consortia competing for the engineering, procurement, construction, installation and commissioning (EPCIC) contract to build the new floating LNG facility for Eni East Africa and its partners to develop the hydrocarbon discovery in the Rovuma basin in Mozambique.

“Developing a cost-effective solution for the first FLNG vessel in Mozambique was the rationale for developing the KD consortium,” says Stuart Bradie, KBR president and CEO. “The consortium allows us to leverage the strength of both companies to provide the client the best choice for the EPCIC portion of the project.” 

Eni was awarded a license to explore an area approximately 2000km north of the capital of Maputo. The block, known as Area 4, is located in the deep waters of the Rovuma basin.  Eni’s Coral South development project,  in the Rovuma basin, is located in Mozambique’s northern border with Tanzania. Coral South is situated approximately 150 mi. northeast of Pemba and 30 mi. from the Mozambique coast. 

Later this month, Mozambique will announce their fifth licensing round in London that will include a total of 15 blocks with a total acreage of 76,800sq km. The competitive bidding round will offer hydrocarbon exploration that includes areas offshore Rovuma, Zambezi and Angoche. The licensing round is scheduled to close on 20 January 2015.

According to Reuters, more than US$30 billion will be committed in Mozambique to produce 20mtpa of LNG annually. The ports of Pemba and Palma will also be redeveloped under a massive program. Mozambique's national oil company, Empresa Nacional de Hidrocarbonetos (ENH), verified that the project will be operational by 2018.

Read more:

Mozambique approaching 5th licensing round

Mozambique will host US$30 billion LNG project



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