State-owned Oil India Limited expects the Area 1 liquefied natural gas (LNG) project in Cabo Delgado to resume by the end of 2025, following a four-year halt caused by insecurity in the Palma district, according to Reuters.
Ranjit Rath, chairman of Oil India, stated, “With improved security conditions, the project is expected to restart in the second half of 2025 and is well-positioned to meet the growing demand of the Indian gas market.” The company is part of a consortium of Indian investors holding 30% of the capital, alongside ONGC Videsh and Bharat PetroResources.
During a recent visit to Palma, Maxime Rabilloud, CEO of TotalEnergies in Mozambique, announced that operational details are being finalized for the formal restart of activities on the Afungi Peninsula.
“We are preparing to lift the ‘force majeure,’ and this is the focus of our efforts to restart the project,” Rabilloud said during the inauguration of the 1.7-kilometer Quitunda–Senga road, a social infrastructure project financed by the oil company for the benefit of resettled communities.
He indicated that around 90% of engineering works are already complete, with critical equipment, including turbines, nearing completion abroad and expected to arrive once the restart is formalized. A maritime logistics base is also being installed in Afungi to support the reception of ships and the handling of large-scale materials. Rabilloud also met with local businesspeople, addressing concerns about access to supply opportunities and emphasizing the expansion of local content policies. He confirmed that a significant portion of food products is already sourced in Palma, with plans to extend this model to other sectors.
The Area 1 consortium is led by TotalEnergies (26.5%), with Japanese Mitsui (20%), the National Hydrocarbons Company (ENH, 15%), the aforementioned Indian companies (30%), and Thailand’s PTTEP holding the remaining shares.
TotalEnergies’ presence in Palma remains under strong protection, with security measures reinforced by Mozambique’s Defense and Security Forces and Rwandan troops, whose mission was recently renewed under bilateral agreements.
The new timeline announced by Oil India follows a series of prior signals and public commitments. In May, TotalEnergies had already indicated that it expected activities to resume by mid-2025, while the Government reiterated that the final decision rests exclusively with the operating company.
The latest statement by the French oil company, combined with concrete deadlines from the Indian partners, may mark a decisive turning point for the country’s largest ongoing private investment.
Source: Diário Económico
