Mozambique: ExxonMobil optimistic about Rovuma basin project

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Mozambique: ExxonMobil optimistic about Rovuma basin project

10:10 CAT | 06 Jun 2025

File photo: Lusa

The director of liquefied natural gas operations at ExxonMobil expressed optimism on Thursday about the engineering progress of the mega-project planned for northern Mozambique.

“We are currently working on the design (…). We are very optimistic about the project and are putting a lot of energy and effort into it. We expect positive results,” Justin Cloutier told the media in Maputo, on the sidelines of a health, safety and environment training programme supported by the multinational.

In October, ExxonMobil selected the American company McDermott to form a consortium for the engineering design of the mega natural gas production project in Mozambique, which is scheduled for completion this year, ahead of the final investment decision (FDI).

According to information from the US consulting firm, McDermott was then chosen to lead the consortium also formed by Saipem and China Petroleum Engineering and Construction Corporation, with up to 16 months from that date to complete the technical and engineering design, known as FEED (Front End Engineering Design), for the Rovuma LNG project.

“The Rovuma LNG Phase 1 project represents a significant development for the country and provides a significant opportunity for economic growth. The project includes the liquefaction and export of natural gas extracted from the Area 4 offshore fields off the Afungi peninsula in Mozambique [Cabo Delgado],” according to a statement from McDermott.

In addition to ExxonMobil, the consortium also includes Italy’s Eni and China National Petroleum Corporation (CNPC), which hold a 70% stake in the Area 4 Exploration and Production Concession Agreement.

The vice president of the US oil company, Walter Kansteiner, stated on September 23 in New York, following a meeting with the then-Mozambican President, Filipe Nyusi, that ExxonMobil anticipates completing the technical design of this project within a year.

“We have announced our FEED – Front End Engineering Design, our cutting-edge engineering and design [of the project], and that takes about a year. So we look forward to progress on FEED over the next 12 or 13 months,” said ExxonMobil’s vice president for external affairs.

Exxon’s project in Cabo Delgado – a northern province affected by terrorist attacks for seven years – initially estimated production of 15.2 million tonnes of gas per year, but this has since been revised up to 18 million tonnes.

ExxonMobil’s general manager in Mozambique, Arne Gibbs, had suggested on 3 May that the investment decision could be taken at the end of 2025.

The Rovuma LNG project will be “the largest liquefied natural gas project in Africa, and could be the largest project in African history,” Gibbs added.

Mozambique has three approved development projects for the exploration of natural gas reserves in the Rovuma Basin, ranked among the largest in the world, off the coast of Cabo Delgado. These include one by TotalEnergies, which is still suspended due to security issues, located on the Afungi Peninsula.

Source: Lusa