TOTALEnergies has denied reports of suspending contracts in Mozambique’s LNG project, stating it is only not renewing contracts that ended. The company is currently in a force majeure situation, focusing on project preservation and improved security conditions.
TOTALEnergies has refuted claims regarding the suspension of contracts with subcontractors at its Liquefied Natural Gas (LNG) site in Mozambique’s Afungi Peninsula. The company clarified that it is simply not renewing contracts that have ended, rather than halting ongoing projects. Maxime Rabilloud, the Mozambique country manager, emphasized the situation as a force majeure, where project restart is not currently feasible but preservation efforts are ongoing.
Rabilloud addressed the media after meeting with Cabo Delgado’s governor, Valige Tauabo. He indicated that TOTALEnergies is not discontinuing contracts with subcontractors working in Palma; instead, certain activities have fixed timelines, resulting in a temporary demobilization when these operations conclude. He reassured that new work will commence subsequently.
The LNG project, initially launched in late 2019, was interrupted in April 2021 due to attacks by Islamic insurgents, which led to significant security concerns. Following these events, TOTALEnergies stated that security conditions have improved. Additionally, the company is awaiting re-approval of a loan from the U.S. Export Import (EXIM) bank, which finances over 20% of the project’s $20 billion cost.
In a management shakeup in January 2025, Nicolas Cambefort was appointed as the new project manager for Mozambique LNG, replacing Stéphane Le Galles, who played a pivotal role in the project’s initiation. After six years in this position, the transition was deemed timely for the project’s ongoing development.
TOTALEnergies has clarified misconceptions regarding its operational status in Mozambique, asserting it is not suspending contracts but refraining from renewing completed ones. The company is engaged in necessary preservation work under a force majeure status while awaiting loan re-approval and management changes. The overall project faces delays but shows potential for future progress as security concerns improve.
Original Source: africaoilgasreport.com
