Rosneft and ExxonMobil Select Contractors for Initial Phase Engineering and Design for Russian Far East LNG Project

Sep 27, 2013 - 08:46 AM EDT

Dateline:

Sochi

Sochi, September 27, 2013 -- Rosneft and ExxonMobil today selected CB&I UK and Foster Wheeler Energy as contractors for initial phase front end engineering and design (FEED) for a proposed Russian Far East liquefied natural gas project.

 

­Rosneft and ExxonMobil intend to finalize project design by the end of 2014, including front-end engineering and design documentation for the LNG plant, associated facilities and gas pipeline, as well as engineering studies and environmental impact assessment.

 

CB&I UK and Foster Wheeler Energy will be awarded separate contracts for the initial phase front end engineering and design. The scope of work covers a conceptual project including finalizing details for an LNG plant site, gas liquefaction technology and construction method. Following submission by the companies of their respective concepts and design, Rosneft and ExxonMobil will evaluate the companies' work product prior to awarding a contract for the second phase of FEED.

 

The plant design capacity of the project is expected to be five million tons per year and may be expanded in the future. The liquefaction plant will receive natural gas feedstock from Rosneft’s reserves in the Far East and Sakhalin gas reserves.

 

“We are pleased with the technical progress of our joint team of experts from Rosneft and ExxonMobil,” said Rosneft President Igor Sechin. “With our initial FEED contractors on board now we will see the project begin to take shape in a matter of months. We are taking a determined approach with this project to help monetize the gas resources of Russia.”

 

“We look forward to working with Rosneft and our initial FEED contractors on further evaluation of specific technical and commercial aspects of a potential LNG project,” said Glenn Waller, president of ExxonMobil Russia. ”Special attention will be given during the design phase to reduce the environmental impact on the unique ecosystem of the area and to developing local infrastructure.”

 

CAUTIONARY NOTE:

Statements of future events and conditions in this release are forward-looking statements. Actual future results, including project plans, timing, costs, and capacities, could differ materially depending on the outcome of future negotiations; the actions of governmental authorities and regulators; changes in prices and other market and economic factors affecting the oil and gas industries; future technological developments; unexpected technical or operating issues; actions of competitors; and other factors discussed under the heading “Factors Affecting Future Results” on the Investors page of ExxonMobil’s website at exxonmobil.com/investors. The term "project" as used in this release does not necessarily have the same meaning as under SEC Rule 13q-1 relating to government payment reporting."

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