TOTALEnergies has refuted claims of suspending contracts at its Mozambican LNG site, clarifying it is not renewing expired contracts only. Country manager Maxime Rabilloud affirmed ongoing preservation work amid the force majeure situation. The company anticipates improved security conditions and awaits essential loan re-approval for project continuation.
TOTALEnergies has firmly rejected the rumors suggesting a suspension of contracts with subcontractors at its substantial Liquefied Natural Gas (LNG) project in Mozambique’s Afungi Peninsula. The firm clarified that it is only refraining from renewing contracts that have naturally expired, rather than enacting a full suspension of operations.
Maxime Rabilloud, the country manager for TOTALEnergies in Mozambique, emphasized, “Everyone knows that we are still in a situation of force majeure.” He noted that while the project cannot be restarted at this time, conservation efforts are underway to prepare for future operations. Rabilloud spoke at a press conference following a meeting with Cabo Delgado’s governor, Valige Tauabo.
Rabilloud further explained that some subcontracted works are not ongoing but have definitive start and end phases. He elucidated, “When one of these operations is carried out and comes to an end, I have a certain demobilization, which will be followed later, to start new works.” This statement aims to clarify misconceptions regarding contract suspensions in Palma.
Work on the LNG site, estimated at 13 million tonnes per annum, commenced in late 2019. Operations were halted in April 2021 due to violent attacks by Islamic insurgents in nearby regions. TOTALEnergies has reported improvements in security conditions and is awaiting the re-approval of a significant loan from the United States’ Export-Import Bank, which finances over 20% of the project’s more than 20 billion dollars cost.
In mid-January 2025, leadership changes were made within the Mozambique LNG project, as Stéphane Le Galles was succeeded by Nicolas Cambefort, who has recently returned from Paris. Le Galles played a pivotal role in initiating the project back in 2019, and it was deemed an appropriate time for new leadership after six years of service.
In conclusion, TOTALEnergies denies the allegations of contract suspensions at its LNG site in Mozambique, confirming that it is only not renewing expired contracts. The company is currently focused on preservation efforts during the ongoing force majeure situation and is optimistic about future project resumption once security conditions are assured. Additionally, the firm is awaiting crucial loan approvals to advance its operations further.
Original Source: africaoilgasreport.com
