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ExxonMobil Chooses McDermott for Rovuma LNG Initiative

In an impactful development for Mozambique's burgeoning energy sector, ExxonMobil Moçambique Limitada has granted McDermott Energy Solutions (UK) Limited a letter of intent. This move is aimed at propelling the Rovuma LNG project, a key initiative for the region's gas exploitation and export ambitions. This project will see McDermott play an instrumental role alongside several prominent joint venture partners, including Saipem S.p.A, Daewoo Engineering & Construction Co. Ltd., and China Petroleum Engineering & Construction Corporation (CPECC).

The letter of intent encompasses limited engineering and procurement services, facilitating the continuation of midstream development for Rovuma LNG Phase 1. This critical step lays the groundwork for a future final investment decision anticipated in 2026, marking a turning point in the project’s advancement. The SMDC joint venture, of which McDermott is a majority stakeholder, is recognized for its extensive global expertise in engineering, procurement, and construction of Liquefied Natural Gas (LNG) facilities.

Michael McKelvy, the CEO and Chair of McDermott, noted, "Our participation in the Rovuma LNG project builds on our established track record in Mozambique and reflects our disciplined execution approach. With our significant experience, we are committed to delivering the essential infrastructure that aims to position Mozambique as a major player in the global LNG market."

The onshore development associated with the Rovuma LNG project is envisioned to include 12 modular liquefaction units, designed to achieve a production capacity of approximately 18.6 million tonnes of LNG per year. The project's expected launch is slated for 2031, marking ExxonMobil's largest single investment in Mozambique to date.

Rob Shaul, Senior Vice President of Low Carbon Solutions at McDermott, expressed how the award underlines the company’s strong relationship with ExxonMobil and its capability to navigate complex LNG projects. He mentioned, "Having successfully completed the front-end engineering design for Rovuma LNG, we believe we are exceptionally positioned to move forward with the next project phase."

Key engineering phases, particularly those related to the liquefaction modules, will be conducted from McDermott’s offices in London and Gurgaon, with project management being integrated into the joint venture's Milan-based team.

The economic forecasts for the Rovuma LNG project indicate it could bring an impressive revenue of around $150 billion to the Government of Mozambique over its 30-year lifespan. Additionally, the initiative is projected to contribute approximately $11 billion annually to Mozambique's Gross Domestic Product (GDP) and provide jobs for over 150,000 individuals, according to a comprehensive macroeconomic analysis from Standard Bank.

About McDermott

McDermott is acknowledged as a leading full-service provider of engineering and construction solutions tailored for the energy sector. The company adopts a technology-driven strategy aimed at responsibly harnessing and transforming global energy resources into essential products. With operations spanning over 30 countries and a workforce exceeding 30,000 employees, McDermott is equipped with a diverse fleet of specialized marine construction vessels and fabrication facilities worldwide.

For additional information, please visit www.mcdermott.com.

Caution Regarding Forward-Looking Statements

McDermott would like to caution that this communication contains forward-looking statements, involving various risks, uncertainties, and contingencies that may affect project timelines and scopes outlined herein. These predictions rely on numerous underlying assumptions, and actual outcomes may differ substantially from those anticipated. Stakeholders are advised not to place undue confidence in such statements. McDermott retains no obligation to update or revise any forward-looking commentary.