The Government announced on Friday, 21 November, that it still has no concrete timeline for launching the audit that must validate the proposal submitted by TotalEnergies for a ten-year extension of the concession period for the liquefied natural gas (LNG) megaproject in Area 1 of the Rovuma Basin, in Cabo Delgado province, northern Mozambique.
The French energy company’s request comes as compensation for the accumulated losses during the four-year forced suspension of activities, estimated at 288.9 billion meticais (USD 4.5 billion). The information appears in a letter sent by the company’s CEO, Patrick Pouyanné, to the President of the Republic, Daniel Chapo, in which he also announces the decision to lift the “force majeure” clause, triggered in 2021 following armed attacks in Cabo Delgado.
“There is no defined timeline nor has an auditor been selected, but I believe it will be based on a very open tender that will involve several fronts. There are other avenues to be considered in this process,” said Government spokesperson Inocêncio Impissa.
According to him, the Government may seek advice from countries with greater experience, noting that the terms of reference must be prepared for the audit to advance. However, Impissa recalled that TotalEnergies has 30 days to submit the project restart schedule.
Recently, TotalEnergies stated that security conditions are now in place for the full resumption of the Mozambique LNG project. In a document, the concessionaire “respectfully” requested the Government to authorise an additional ten-year extension of the Development and Production Period for the Golfinho-Atum field, emphasising that this measure would “partially compensate the economic impact” caused by the prolonged interruption of operations.
The letter, disclosed by Lusa, also highlights the need to “optimise the financial obligations” of Empresa Nacional de Hidrocarbonetos (ENH), Mozambique’s state oil and gas company and partner in the consortium led by TotalEnergies.
As a final condition before the project relaunch, the concessionaire states that it awaits Government approval of an addendum to the Development Plan, which includes a revised budget and schedule. According to the company, the update reflects the additional costs incurred due to the events classified as “force majeure”, totalling the aforementioned USD 4.5 billion.
Patrick Pouyanné recalls that the Government conducted an audit between 2021 and 2024 on the financial consequences of the suspension, and the company expects to receive the report “as soon as possible.”
The letter further notes that the prolonged period of inactivity directly affected the project timeline, delaying the first delivery of LNG from the Afungi facility — initially expected in July 2024 — to the first half of 2029. As a result, the Development and Production Period will be extended by four and a half years.
The Mozambique LNG project represents an investment of about 1.3 trillion meticais (USD 20 billion) and is considered the largest private undertaking currently in progress in the country. Estimated production stands at 13 million tonnes of LNG per year, with project development already around 40%, according to figures released by TotalEnergies.
Mozambique has three approved development projects for the exploitation of its natural gas reserves in the Rovuma Basin — classified among the largest in the world — all located off the coast of Cabo Delgado province.
A study by consultancy Deloitte indicates that Mozambique’s vast natural gas reserves could generate up to USD 100 billion in revenue by 2040, making the country one of the world’s top ten producers and responsible for 20% of Africa’s LNG output.
