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Project Insights

McDermott crisis raises questions over Mozambique LNG

McDermott’s financial difficulties could mean Saipem is left to build the Mozambique LNG project on its own, for which it may not have the resources McDermott’s financial difficulties could mean Saipem is left to build the Mozambique LNG project on its own, for which it may not have the resources.
By Leigh Elston 19 December 2019 Middle East & Africa / LNG 0 34899
Pemba, the logistics base for the Mozambique LNG project. (Interfax)

The key issue: US offshore engineering company McDermott is facing severe financial difficulties, raising questions over its ability to deliver on the Mozambique LNG project.

Interfax analysis: The financial difficulties facing energy construction and services business McDermott could mean Saipem is left to build the Mozambique LNG project on its own.

Joint-venture partner Saipem has already stepped up to take on more of the project work, but it may not have the manpower to take on even more – and if the Italian energy contractor cannot...