Mozambique Restores LNG Force Majeure Period, TotalEnergies Concession Extension Rejected
The Mozambican Government has decided to reinstate the four-and-a-half-year suspension period during which the LNG megaproject in Cabo Delgado was under force majeure, rejecting TotalEnergies’ proposal for a ten-year extension of the concession to offset losses incurred during the halt.
A source close to the process told Lusa that the resolution, approved at Tuesday’s Council of Ministers meeting, “in line with applicable regulations, reinstates the suspended period due to force majeure, ensuring the recalculation of the 30-year development term and preserving the elements of the initial Development Plan.”
The Cabinet resolution also emphasizes the “need to assess all expenses incurred during the force majeure period,” which TotalEnergies invoked due to terrorist attacks in Cabo Delgado from April 2021 to October 2025, resulting in a four-and-a-half-year project suspension.
The assessment will be conducted “with technical rigor and transparency, guaranteeing protection of the public interest and contractual predictability through an independent audit, which includes the right to respond before approval of the final report.”
The Government further pledged to provide the necessary institutional and executive support to enable the orderly and efficient resumption of project activities.
On 12 November, Mozambican President Daniel Chapo stated that negotiations with TotalEnergies were expected to conclude within a week.
The company had requested a ten-year concession extension to compensate for losses of $4.5 billion.
“If all goes well, we will conclude discussions with the Total-led project within about a week, so operations can resume after the public announcement lifting the force majeure. Official communication has now been issued,” said President Chapo.
He added, “We are working to resolve the key points to benefit both the Mozambican people and the investors, ensuring the project can resume as quickly as possible.”
The dispute centers on conditions set by TotalEnergies in a letter delivered to the Mozambican Presidency on 24 October, notifying the decision to lift the force majeure clause after four and a half years and requesting compensation for losses during the suspension.
TotalEnergies, leader of the Rovuma Basin Area 1 consortium, proposed the concession extension to offset $4.5 billion (€3.87 billion) in losses incurred during the project halt.
In the letter, signed by TotalEnergies President Patrick Pouyanné, the company justified the request as necessary “to partially compensate for the economic impact” of the suspension, noting that security conditions for resumption are now in place along with a revised project budget.
“This revised budget’s approval shall cover the incremental costs incurred by the project due to the force majeure, which amount to $4.5 billion,” the letter adds.
The $20-billion (€17-billion) LNG megaproject in Cabo Delgado now indicates that the first LNG delivery from the first train at Afungi has been delayed from July 2024 to the first half of 2029.
Mozambique hosts three approved LNG megaprojects in the Rovuma Basin, ranked among the world’s largest, off the coast of Cabo Delgado.
These include TotalEnergies’ project (13 mtpa), preparing to restart after the suspension, and ExxonMobil’s 18 mtpa project valued at $30 billion (€26.1 billion), which is awaiting a final investment decision. Both projects are located on the Afungi peninsula.
Additionally, Italian company Eni’s Coral Sul floating platform has been producing around 7 mtpa since 2022. Production is expected to double by 2028 with the Coral Norte platform in a $7.2-billion (€6.2-billion) investment.
