TOTALEnergies has denied reports of suspending contracts in Mozambique, clarifying that it is not renewing expired contracts. The situation remains under force majeure, but the company is preparing for a project restart while improvements in regional security are noted. A management change has also occurred as part of project developments.
TOTALEnergies has refuted claims regarding the suspension of contracts for its Liquefied Natural Gas (LNG) project in northern Mozambique. The company clarified that it is not renewing contracts that have already expired rather than suspending ongoing contracts with its subcontractors.
Maxime Rabilloud, TOTALEnergies’ country manager in Mozambique, stated during a press conference that the situation remains under force majeure, thus halting project restart efforts. He emphasized that ongoing preservation work continues, laying the groundwork for a potential restart of operations.
Rabilloud explained that the contracted works are not continuous; some have specific timelines that conclude, leading to necessary demobilization. The focus remains on sequencing new works after previous contracts have ended rather than halting operations entirely.
The LNG project, capable of producing 13 million tonnes annually, commenced in late 2019 but faced operational halting in April 2021 due to violent attacks by Islamic insurgents in surrounding areas. TOTALEnergies reported improvements in local security and is awaiting re-approval for a crucial loan from the United States’ Export Import Bank, which finances a significant portion of the project’s costs.
In a recent management change, Nicolas Cambefort succeeded Stéphane Le Galles as the Mozambique LNG project manager, a decision that follows Le Galles’ six-year tenure since the project’s inception. This transition marks a new chapter as TOTALEnergies navigates its operational future in Mozambique.
In summary, TOTALEnergies has clarified misconceptions regarding contract suspensions related to its LNG project in Mozambique, insisting that it is not renewing expired contracts while continuing preparations for future operations. The company emphasizes the improvement of security in the region and their ongoing efforts to secure essential funding, all while managing staff transitions within their project management team.
Original Source: africaoilgasreport.com
