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Mozambique: Smit Lamnalco in $200M Coral FLNG support contract

Dutch offshore vessel owner Smit Lamnalco has won a $200 million, 10 years contract to provide services for Coral South FLNG offshore Mozambique. Smit Lamnalco, a 50% affiliate of Boskalis, will provide integrated marine services to what will be Mozambique’s FLNG unit, operated by Eni. “This marks the first terminal services contract award
for the Mozambique offshore LNG developments. The contract value for Smit Lamnalco amounts to approximately USD 200 million, and services will commence early 2022,” Boskalis said. For the delivery of its services, Smit Lamnalco will deploy three new 95-ton bollard pull tugs to provide escort, berthing, and unberthing services to LNG carriers at the FLNG facility. Smit Lamnalco will use a new offshore support vessel to provide logistical and marine services support. Eni-operated Coral South project will put in production 450 billion cubic meters of gas from the giant Coral reservoir. The FLNG hull is expected to be launched in 2020, in line with the planned production startup of the Coral South project in 2022. “This marks the first terminal services contract award for the Mozambique offshore LNG developments. The contract value for Smit Lamnalco amounts to approximately USD 200 million, and services will commence early 2022,” Boskalis said. The Coral Sul FLNG facility will have a gas liquefaction capacity of 3.4 million tons per year when completed and will be the first FLNG vessel ever to be deployed in the deep waters of the African continent, according to Eni. The continent’s first FLNG in operation is the Hilli Episeyo, producing LNG from Perenco’s Kribi field offshore Cameroon. It began production in March 2018. Back to the Coral project, the Coral South FLNG vessel will be 432 meters long, 66 meters wide, and weigh about 220,000 tons. It will be able to house up to 350 people in its accommodation module. The facility will be anchored at a water depth of around 2,000 meters through 20 mooring lines weighing 9,000 tons in total. Construction works on the Coral Sul FLNG started in 2018 By the end of 2019, the overall progress of the project is expected to exceed 60% completion with the total man-hours worked shortly expected to reach 10 million. Eni has previously said that drilling and completion activities for the six subsea wells that will feed the liquefaction unit will begin in September 2019. The wells will have an average depth of approximately 3000 meters and will be drilled in about 2000 meters of water depth. The activities, carried out by the Saipem 12000 drilling rig, will be completed by the end of 2020. Eni is the operator for the Coral South FLNG project, designed to develop gas resources discovered in Area 4, Mozambique. The Area 4 participants are Eni (25%),ExxonMobil (25%), CNPC (20%), Empresa Nacional de Hidrocarbonetos E.P. (10%), Kogas (10%) and Galp Energia(10%). The Italian oil and gas company has been present in Mozambique since 2006. Between 2011 and 2014, Eni discovered super-giant natural gas resources in the Coral, Mamba Complex and Agulha reservoirs, holding estimated 2,400 billion cubic meters of gas in place.

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