ExxonMobil Awards $1.1 Billion in Contracts for Mozambique’s Rovuma LNG Project

ExxonMobil, on behalf of the Area 4 partners, has awarded about $1.1 billion in pre-investment contracts for Mozambique’s Rovuma LNG project, bringing key suppliers into the development ahead of a final investment decision expected in 2026. The contracts, awarded on 17 August, cover subsea production systems, large-bore valves and offshore line pipe for the first phase of the project in Cabo Delgado. The orders are intended to secure equipment with long manufacturing lead times and help keep the project on schedule.

The largest contract went to OneSubsea, with local work supported by Aker Solutions Mozambique. Earlier, on 7 August, the Area 4 partners signed a letter of intent with the SMDC joint venture, comprising Saipem, McDermott, Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation, for limited engineering and procurement work on the project’s onshore facilities.

Rovuma LNG Moves Towards Development

The Area 4 partnership includes Mozambique’s state-owned ENH, China National Petroleum Corporation, Eni, Korea Gas Corporation and Abu Dhabi’s XRG. ExxonMobil holds a 25% indirect interest in Area 4 and serves as the delegated operator of Rovuma LNG.

The project plans to install 12 liquefaction modules with combined capacity of 18.6 million tonnes of LNG per year. McDermott has indicated a potential start-up in 2031, while the partners expect to make the final investment decision in 2026.

The contract awards do not represent the final investment decision, but they move the project further into the procurement and execution phase. Securing long-lead equipment at this stage also gives contractors and suppliers greater visibility ahead of the main construction programme.

At 18.6 million tonnes per year, Rovuma LNG would become a major addition to Mozambique’s gas industry and could increase the country’s role in global LNG markets.

Mozambique Faces Revenue and Security Test

For Mozambique, the value of the project will depend on how effectively the investment translates into government revenue, employment, local procurement and skills development. Security remains another consideration after the insurgency in Cabo Delgado forced ExxonMobil to halt work in 2021. The company lifted force majeure in late 2025.

ExxonMobil estimates that the project could generate $150 billion in government revenue over its 30-year operating life. A Standard Bank macroeconomic study estimates that Rovuma LNG could add about $11.4 billion a year to GDP and support roughly 151,000 jobs across the project, its supply chain and the wider economy.

Direct employment at the operating project is expected to be much smaller, at around 1,000 jobs. The wider economic estimates will depend on LNG prices, project costs, the fiscal regime and the extent to which spending reaches local businesses and the broader economy.

For Mozambique, the next major milestone remains the final investment decision. The contracts awarded this month secure critical equipment, but the project still has to move from procurement into full construction and eventually production.