ExxonMobil and Area 4 partners award $1.1 billion in contracts for Mozambique’s Rovuma LNG project ahead of final investment decision

ExxonMobil and its Area 4 partners have awarded roughly $1.1 billion in engineering, procurement, and manufacturing contracts for the Rovuma LNG project in Cabo Delgado, Mozambique—and they did it before making a final investment decision. The planned onshore liquefaction facility would process offshore gas at 18.6 million metric tons per year.

The biggest contract went to OneSubsea UK Ltd and OneSubsea AS, covering subsea production systems, controls, and umbilicals. Other awards went to suppliers including Advanced Technology Valve SpA, Corinth Pipeworks, Sumitomo Corporation of America, and Zhejiang Jiuli Hi-Tech Metals.

ExxonMobil issues $1.1 billion in pre-FID contracts

ExxonMobil Moçambique and its Area 4 partners handed out contracts across engineering, procurement, fabrication, and manufacturing. The scale is significant—and so is the timing.

ExxonMobil describes it as one of the largest private investments in Mozambique’s history—a claim that’s hard to dispute given what’s being built.

OneSubsea UK Ltd and OneSubsea AS landed the largest single award, covering subsea production systems, controls, and umbilicals, with in-country support from Aker Solutions Mozambique Ltda. A separate contract went to Advanced Technology Valve SpA for engineering, procurement, fabrication, testing, and delivery of large-bore production valves.

These aren’t minor line items. Subsea production infrastructure ranks among the most technically demanding and expensive parts of any offshore gas development—full stop.

Why contracts were awarded before final investment decision

Committing over a billion dollars before a final investment decision might seem counterintuitive. ExxonMobil says it’s strategic.

“Awarding these contracts before FID optimizes project execution timelines and helps ensure the availability of critical infrastructure,” ExxonMobil Moçambique said in a press release. The logic isn’t complicated: certain materials take months—sometimes years—to fabricate. Waiting until after FID to place orders means delays are baked into the schedule before a single weld is made.

That’s especially true for subsea systems and large-diameter pipes, which require specialized equipment and serious production capacity. Getting suppliers started early locks in that capacity before someone else claims it.

ExxonMobil also signed a letter of intent with the SMDC joint venture—a consortium of Saipem, McDermott, Daewoo Engineering & Construction, and China Petroleum Engineering & Construction Corp (CPECC). That agreement covers limited engineering and procurement services to support project definition and planning as the Area 4 partners work toward a final investment decision in 2026.

Scope of suppliers and manufactured components

The contract awards span multiple countries and specialized industrial sectors—which alone signals how complex a project at this scale becomes.

Corinth Pipeworks Pipe Industry will manufacture submerged arc welded line pipes. Sumitomo Corporation of America takes on seamless line pipes. Zhejiang Jiuli Hi-Tech Metals is contracted to produce mechanically lined pipes, induction bends, weld overlay products, and associated pipe systems. Each component plays a distinct role in moving gas safely from offshore wells to the onshore liquefaction facility.

Taken together, these contracts let suppliers begin fabricating materials that require large quantities and specialized equipment—items with extended delivery schedules that simply can’t be rushed.

When complete, Rovuma LNG is planned to include 12 modular liquefaction modules. That design offers flexibility, but it also means enormous volumes of piping, valves, and subsea infrastructure must be ready and on-site the moment construction ramps up.

Project background and investor landscape

Rovuma LNG sits in Area 4 of the Rovuma Basin, off the coast of Mozambique’s Cabo Delgado province. ExxonMobil describes it as one of the largest private investments in Mozambique’s history—a claim that’s hard to dispute given what’s being built.

The Rovuma Basin is one of the largest natural gas discoveries made anywhere in the world over the past 15 years, pulling in major international capital and triggering a wave of LNG development planning across the region.

The investor group got a notable addition in 2025. XRG PJSC—the international investment arm of Abu Dhabi National Oil Company—acquired Galp Energia’s 10 percent stake in the Area 4 concession. That deal brought XRG into not just Rovuma LNG, but also the operational Coral South Floating LNG facility and the planned Coral North FLNG project.

“The Rovuma Basin, one of the largest gas discoveries in the past 15 years, offers XRG access to pioneering LNG projects with a combined potential production capacity of more than 25 million tons per annum,” XRG said in March 2025. Across Coral South, Coral North, and Rovuma LNG, that combined figure reflects just how much production potential the basin holds.

A planned 18.6 million metric tons per year

Here’s where things stand. Exxon Mobil Corporation and its Area 4 partners have committed roughly $1.1 billion in pre-FID contracts spanning subsea systems, piping, valves, and engineering services. The move is designed to compress the overall project timeline by getting long-lead items into fabrication now rather than waiting.

Planned capacity sits at 18.6 million metric tons per year across 12 modular liquefaction units. A final investment decision is targeted for 2026, with XRG PJSC now part of the investor group, adding Abu Dhabi’s sovereign energy capital alongside ExxonMobil and the existing Area 4 partners.

Whether FID arrives on schedule will depend on commercial, regulatory, and security conditions in Cabo Delgado — a region that has faced significant instability in recent years. The contract awards, though, signal that the partners are pushing forward and building real momentum toward that decision.

Kelly Lippke

Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.