Revocation of force majeure on Mozambique LNG expected this year: ONGC Videsh

The force majeure status on the Mozambique LNG export project, which has been in effect since 2021 due to security concerns stemming from attacks by Islamic State terrorists, is expected to be revoked sometime this year, Rajarshi Gupta, the managing director of ONGC Videsh, said during a press event in New Delhi on August 29, stating that the security situation has notably improved.

“The security situation has substantially improved. There are boots on the ground. About 2,000-2,500 people are working there. We have been having good talks with TotalEnergies and other partners. The revoking of the force majeure should happen anytime this year,” Gupta said.

The Mozambique LNG project, operated by French company TotalEnergies, is a significant venture in the country, involving the development of the Golfinho and Atum fields in Offshore Area 1.

The project aims to construct two liquefaction trains with a combined annual capacity of 13.1mn tonnes/year of LNG. ONGC Videsh, the overseas arm of state-owned ONGC, and other Indian state-owned energy companies hold a total stake of 30% in the project.

Gupta further emphasised that efforts are being made to communicate with vendors, contractors, and off-takers to ensure a smooth restart for the project once the force majeure is lifted.

On April 26, 2021, considering the evolution of the security situation in the north of Cabo Delgado province, Mozambique LNG withdrew all project personnel from the Afungi site. This situation also led the Mozambique LNG project partners to declare force majeure.