GE Lands Coral FLNG Contract

Italian Eni has awarded US-based GE Oil & Gas two five-year contracts for subsea production systems, equipment and services for the Coral South floating LNG project offshore Mozambique, GE said June 27.

The contract comes with additional extension options totalling 25 years for the likely subsequent rollout of Mamba gas-related deepwater projects pegged to onshore LNG plants. It follows the June 26 announcement of a contract for Norwegian contractor Aker Solutions on Coral.

GE’s first five-year contract relates to Coral FLNG development, while there is also a separate five-year aftermarket services Life of Field contract for the subsea infrastructure. Contract values were not disclosed for either.

For the former, GE Oil & Gas has secured orders for the Coral South FLNG for the supply of seven Christmas trees, three 2-slot manifolds with integrated distribution units, seven subsea wellheads, and a complete topside control system to be installed on the FLNG facility, plus other parts and services – including technical assistance for installation, commissioning and start-up.

Project start-up 'mid-2022'

Coral South FLNG will have capacity of 3.4mn metric tons/yr, fed by six subsea wells and expected to produce up to 5 trillion ft³ gas. GE's statement said the project's anticipated start-up is mid-2022. “With the award of this project in Mozambique following the recent OCTP Project in Ghana – with first oil delivered ahead of schedule and in record time-to-market – GE reaffirms its subsea leadership in Africa,” said GE Oil & Gas’ sub-Saharan Africa CEO Ado Oseragbaje.

The European Commission said May 31 it has cleared unconditionally GE Oil & Gas’s takeover of Baker Hughes, both of the US. Two weeks ago both companies reached an agreement with the US Department of Justice that will allow their merger to be completed under US law.

Mark Smedley