ExxonMobil in Mozambique Awards McDermott Letter of Intent for Rovuma LNG Project

PR Newswire

HOUSTON, Aug. 6, 2026

HOUSTON, Aug. 6, 2026 /PRNewswire/ — McDermott Energy Solutions (UK) Limited, a subsidiary of McDermott and a majority shareholder in the SMDC joint venture with Saipem S.p.A., Daewoo Engineering & Construction Co. Ltd. and China Petroleum Engineering & Construction Corporation (CPECC), has been awarded by ExxonMobil Moçambique Limitada, on behalf of the Area 4 partners, a letter of intent including limited engineering and procurement services for the continuation of the Rovuma LNG Phase 1 midstream development.

This work supports continued project definition and planning as the Area 4 partners progress toward a final investment decision, expected in 2026. The SMDC joint venture brings extensive global experience in the engineering, procurement, and construction of LNG facilities.

“Our work on Rovuma LNG builds on McDermott’s established LNG expertise in Mozambique and our disciplined approach to execution,” said Michael McKelvy, Chief Executive Officer and Chair of the Board for McDermott. “Our experience on Mozambique LNG, combined with our long-term commitment to the country, positions us to deliver critical infrastructure that supports Mozambique’s emergence as a major global LNG supplier.”

The Rovuma LNG project onshore development is expected to include 12 modular liquefaction modules designed to produce 18.6 million tonnes of LNG per year, with start-up anticipated in 2031. The Rovuma LNG project is ExxonMobil’s largest single investment.

“This award reflects the strength of our long-standing relationship with ExxonMobil and our ability to deliver complex LNG developments,” added Rob Shaul, McDermott’s Senior Vice President of Low Carbon Solutions. “Having successfully executed front-end engineering design (FEED) for Rovuma LNG, we are well positioned to advance the project into its next phase.”

Engineering of the inside battery limits (ISBL), including the liquefaction modules, will be executed by McDermott from its London and Gurgaon offices, with project management seconded to the JV team based in Milan.

Rovuma LNG is expected to deliver approximately US$150 billion in revenues to the Government of Mozambique over the project’s 30-year life. Additionally, the Rovuma LNG project, led by ExxonMobil in Area 4, could add around US$11 billion annually to Mozambique’s Gross Domestic Product (GDP), and employ more than 150,000 people according to a macroeconomic study released by Standard Bank.

About McDermott
McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Our customers trust our technology-driven approach engineered to responsibly harness and transform global energy resources into the products the world needs. From concept to commissioning, McDermott’s innovative expertise and capabilities advance the next generation of global energy infrastructure—empowering a brighter, more sustainable future for us all. Operating in over 30 countries, McDermott’s locally-focused and globally-integrated resources include more than 30,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.

Forward-Looking Statements
McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties. These forward-looking statements include, among other things, statements about the expected timing of final investment decision and the expected scope and execution of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit or capital markets; our inability to successfully execute on contracts in backlog; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties; changes in industry norms; actions by lenders, other creditors, customers and other business counterparties of McDermott and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. This communication reflects the views of McDermott’s management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.

Contacts:

Global Media Relations
Reba Reid
+1 281 588 5636
RReid@McDermott.com