ExxonMobil is about to lift the “force majeure” that halted the Rovuma LNG megaproject in Area 4 of the Rovuma Basin, northern Mozambique, following signs of improved security conditions. This assurance was given by the CEO of the U.S. oil company, Darren Woods, in an interview with Bloomberg.
Speaking in São Paulo, Brazil, on the sidelines of the 30th Conference of the Parties to the UN Framework Convention on Climate Change (COP30), taking place from November 10 to 21 in Belém, Woods said that the Final Investment Decision (FID) is expected to occur “in the very near future,” allowing the project to advance “rapidly.”
“We have used this time to refine the project design and define the best possible concept. Once the ‘force majeure’ is lifted, we will be ready to move forward with the final decision and get underway,” the CEO stated.
The “force majeure” was declared in 2021 after an attack by ISIS-linked insurgents on the town of Palma in Cabo Delgado, which led to the suspension of operations by ExxonMobil and TotalEnergies, the latter developing a similar project in the region. Both companies are now preparing to resume activities, signaling a new phase for Mozambique’s energy sector.
These two megaprojects are considered crucial for transforming Mozambique’s economy, with the potential to place the country among the world’s largest exporters of liquefied natural gas (LNG) and to generate significant state revenues over the coming decades. During the interview, Woods also emphasized that ExxonMobil is focused on developing low-cost resources and ensuring a balance between the energy transition and the growing demand for gas and oil, expecting these resources to remain relevant through 2050.
The Rovuma LNG project, valued at $30 billion (1.91 billion meticais), is led by ExxonMobil, with Italian company Eni managing the floating component (Coral North and Coral South). The Final Investment Decision is expected in early 2026, with the first gas shipment scheduled for 2030.
Concessionaires of Area 4 include Mozambique Rovuma Venture (MRV) S.p.A, a joint venture co-owned by Eni, ExxonMobil, and CNODC (70%), Empresa Nacional de Hidrocarbonetos E.P. (10%), Galp Energia Rovuma B.V. (10%), and KOGAS Mozambique Ltd. (10%).
Mozambique has three approved development projects for exploiting the Rovuma Basin’s natural gas reserves, considered among the largest in the world, all located off the coast of Cabo Delgado province.
A Deloitte consultancy study estimates that Mozambique’s vast natural gas reserves could generate up to $100 billion in revenue by 2040, positioning the country among the world’s top ten producers and accounting for 20% of Africa’s LNG production.
Source: Diário Económico
