Mozambique: Dutch Company Wins Towage Contract for Rovuma Basin

Maputo — The Dutch company Smit Lamnalco has won the contract to supply integrated maritime services to the Floating Liquefied Natural Gas (FLNG) unit in Area Four of the Rovuma Basin, off the coast of the northern Mozambican province of Cabo Delgado.

Smit Lamnalco is an internationally recognised supplier of towage and related maritime services for oil and gas and other onshore and offshore terminals.

The FLNG unit is being installed by a consortium headed by the Italian energy company ENI, and will float above the Coral South gas field. The estimated reserves in this field are at least five trillion cubic feet. The water in this part of the Mozambique Channel is 2,000 metres deep, and the FLNG unit will be anchored some 80 kilometres from the coast of Palma district.

The contract with Smit Lamnalco is for ten years. According a release from the Dutch company, it promises to deploy three new tugs "to provide escort, berthing and un-berthing of LNG Carriers to the FLNG facility".

A fourth ship, an Offshore Support Vessel "will be utilized to provide logistical and marine services support".

"We are looking forward to working in partnership with Coral FLNG to deliver safe and reliable marine services. We are proud that our in-depth knowledge of providing marine service to LNG facilities in on- and offshore as well as over five decades of local content development expertise all around the world has been recognised by our client. We would like to thank them for demonstrating their faith in Smit Lamnalco by awarding the marine services contract to our company", said Robert Jan van Acker, Smit Lamnalco Chief Executive Officer, cited in the release.

According to Maurizio Lanzo, the managing director of Coral FLNG, the contract signed with the Dutch company also envisages a plan for local content which includes training and employment for young Mozambicans.

ENI is the operator of Rovuma Basin Area Four with a 50 per cent participation. ENI has signed a contract with the US oil and gas giant ExxonMobil, under which ExxonMobil will purchase half of ENI's shares, reducing its holding to 25 per cent.

The other partners in Area Four are the China National Petroleum Corporation (20 per cent), Kogas of South Korea (10 per cent), Galp Energia of Portugal (10 per cent), and Mozambique's own National Hydrocarbon Company, ENH (10 per cent).

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