President Daniel Chapo has announced that negotiations with oil giant TotalEnergies to resume exploration and production of liquefied natural gas (LNG) in Area 1 of the Rovuma Basin, located in Mozambique’s northern Cabo Delgado province, will conclude in August.
In an interview with Bloomberg, the head of state said he met earlier this month with TotalEnergies CEO Patrick Pouyanné to discuss restarting the project, which has the potential to transform the country’s economy.
“I met with Mr. Pouyanné two weeks ago, and things are going well. In August, we will conclude our negotiations on when to resume operations,” said the President, in a statement released Monday, July 21.
Chapo acknowledged that terrorism remains a challenge in some parts of the region, noting: “While the region is more stable than four years ago, it is not paradise,” but still called for operations to resume.
Recently, the President argued that TotalEnergies should lift the “force majeure” clause it activated in 2021 due to intensified terrorist attacks in Cabo Delgado. “The most important thing right now with TotalEnergies is lifting the force majeure and moving forward with the project. Even if a development plan is signed, without lifting the force majeure, we won’t be doing anything,” he stated.
For its part, TotalEnergies announced that it plans to resume development of its LNG megaproject in the coming months. CEO Patrick Pouyanné confirmed this during his appearance at the Japan Energy Summit held in Tokyo in June.
When asked about the timeline for restarting the project, Pouyanné said the company is prepared to resume operations soon and reaffirmed its commitment to the investment, valued at approximately USD 20 billion.
The decision to restart the project has been influenced by significantly improved security conditions in Cabo Delgado, thanks to joint operations by Mozambican Defense and Security Forces, SADC troops, and Rwandan military contingents. TotalEnergies previously stated that it has maintained ongoing dialogue with national authorities to ensure that the resumption prioritizes stability and sustainability.
In March 2025, the US ExIm Bank reaffirmed a loan of USD 4.7 billion (MZN 296 billion), a key step toward making the project viable. An additional USD 7 billion (MZN 441 billion) in financing is also being considered, to be guaranteed by financial institutions from the United States.
Mozambique LNG, considered one of Africa’s largest LNG projects, is expected to reach an annual production capacity of 12.8 million tonnes in its initial phase. The project is seen as a strategic milestone for the Mozambican economy, with the potential to generate substantial revenue and establish the country as a key player in the global energy landscape.
The Mozambique LNG project includes the development of the Golfinho and Atum fields located in Offshore Area 1 and the construction of a liquefaction plant with two units capable of producing 13.1 million tonnes per year. Area 1 contains over 60 trillion cubic feet (Tcf) of gas resources, of which 18 Tcf will be developed in the first two liquefaction trains.
The project is operated by Total E&P Mozambique Area 1, Ltd, a wholly owned subsidiary of TotalEnergies, which holds a 26.5% stake. Other partners include ENH Rovuma Area 1, S.A. (15%), Mitsui E&P Mozambique Area 1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).
Source: Diário Económico
