The Government has given TotalEnergies 30 days to present the schedule for restarting the liquefied natural gas project in Area 1 of the Rovuma Basin, in Cabo Delgado. The condition is part of a resolution dated 19 November from the Council of Ministers, which states that the continuation of the project must not await the conclusion of the audit of costs incurred during the force-majeure period.
According to the document, quoted by Lusa, the concessionaire must deliver, by 19 December, the plan with the actions and approvals necessary for immediate implementation of the activities. The resolution also establishes that an independent audit, contracted by the Government, will verify the costs during the force-majeure period, declared in April 2021 and lifted by TotalEnergies on 7 November.
The audit must be validated by the Government, ensure transparency and guarantee the concessionaire’s right of reply before issuing the final report. Claimed expenditures must be associated with contracts previously approved by the regulator of petroleum operations.
The Council of Ministers further clarifies that the initial 30-year Production and Development period, approved in 2018, remains unchanged and that the time of suspension due to force majeure does not count towards the concession term. TotalEnergies had requested an extension of more than ten years, alleging losses of 287.55 billion meticais (USD 4.5 billion) since 2021.
The resolution indicates that all government entities must guarantee the authorisations, licensing and approvals necessary for the remobilisation of operations. It also specifies that cost validation will depend on the audit and on the resolution of technical, administrative and contractual aspects, adjusting the investment schedule and revenue levels, safeguarding national interest.
The President of the Republic, Daniel Chapo, stated on 12 November that he expected swift conclusion of negotiations with TotalEnergies on the project restart, valued at 1.28 trillion meticais (USD 20 billion).
TotalEnergies has already revised the forecast for the first LNG delivery from the initial Afungi plant to the first half of 2029.
Mozambique has three mega-projects approved for gas production in the Rovuma Basin: the TotalEnergies project (13 mtpa), the ExxonMobil project (18 mtpa) still pending Final Investment Decision, and the Eni project which has been producing since 2022 around seven mtpa via the floating Coral Sul platform, with a duplication planned from 2028 via the Coral Norte unit, in an investment of 460.8 billion meticais (USD 7.2 billion).
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