TotalEnergies has told Mozambique that the costs of its liquefied natural gas (LNG) project in the country have risen by $4.5 billion in the four years it was on hold…
TotalEnergies has told Mozambique that the costs of its liquefied natural gas (LNG) project in the country have risen by $4.5 billion in the four years it was on hold, and it wants its production agreement extended by a decade, a letter from its chief executive showed.
The French oil major had confirmed on Saturday that together with its partners it had decided to lift force majeure on the project, which was halted in 2021 by an Islamist militant attack and was previously estimated to cost $20 billion.
But before construction can restart, Mozambique's council of ministers needs to approve an updated budget and schedule.
"This revised budget's approval shall cover the incremental costs incurred by the project due to the force majeure, which amount to $4.5 billion," the letter from TotalEnergies CEO Patrick Pouyanne to Mozambique President Daniel Chapo showed.
Expected First Production in First Half of 2029
The Southern African country's oil and gas regulator is coming up with its own estimate of the project's additional costs and has not said when that will be ready.
Pouyanne's letter, dated October 24 and seen by Reuters, said the prolonged halt to the project's development had pushed
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