Italian energy services provider Saipem said on October 28 that it expects work on the Mozambique LNG project, which was put on hold this year for security reasons, to restart around mid-2022.
During a conference call with analysts, Saipem’s chief financial officer, Antonio Pacioretti, indicated that he did not expect the project to make any significant contributions to his company’s performance in 2021. As of the end of September 2021, he reported, the Mozambique LNG contract was still backlogged in the amount of €3.6bn ($4.18bn). This could change next year, though, he stated.
Pacioretti did not say whether Saipem had received any guidance from France’s TotalEnergies, which is leading the Mozambique LNG initiative. He noted, though, that the project played an important role in his company’s projections for next year.
“In order to reach our revenues target in 2022, we also have to consider the contribution of Mozambique,” he was quoted as saying by Reuters during the conference call. He did not reveal Saipem’s forecast revenues.
The Italian company, through a joint venture with Japan’s Chiyoda and US-based McDermott International, is serving as the engineering, procurement and construction (EPC) contractor for the Mozambique LNG project. The joint venture won the contract in 2019 and is on track to provide about $6bn worth of services to TotalEnergies and its partners. It was due to carry out around €1.4bn worth of work between April and December of this year, but it had to suspend operations following TotalEnergies’ declaration of force majeure in late March.

 

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