Mozambique's government has granted TotalEnergies a 4.5-year extension to its concession for the Mozambique LNG project. This extension compensates for the development time lost while the project was under a force majeure status.

Approval and Official Communication

The extension was reportedly approved during a Council of Ministers’ meeting, as cited by a source close to the government. The official government communique from the meeting did not explicitly mention the 4.5-year extension but confirmed the approval of the resolution for the project's resumption. The communique also mandated an audit of costs incurred during the force majeure period and ensured continued government monitoring of the project.

Project Scope and Revised Timeline

The project, known as the Golfinho-Atum LNG project, is based on two deepwater discoveries that will supply gas to a 13-million-tonne-per-annum liquefaction plant. The original 30-year concession has been extended to account for the force majeure period. With the force majeure now lifted, the project could become operational in 2029 or 2030, assuming no further major disruptions.

Financial and Negotiation Updates

The government is currently reviewing TotalEnergies' revised budget for the project, which has increased by $4.5 billion due to the force majeure's impact on development costs. An audit of this revised budget has been completed, and significant progress has been reported. Mozambique's President expressed an expectation to conclude negotiations with TotalEnergies imminently, and the lead onshore contractor is preparing to officially restart work.