Mozambique to conclude negotiation with TotalEnergies within a week – President

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Mozambique to conclude negotiation with TotalEnergies within a week – President

12:52 CAT | 12 Nov 2025

FILE - For illustration purposes only. [File photo: TotalEnergies]

The Mozambican President expects to conclude the negotiation with TotalEnergies within a week. The French oil major proposed extending the concession of the liquefied natural gas megaproject in Cabo Delgado by 10 years to compensate for losses of 4.5 billion dollars.

“If all goes well, in about a week at most we will conclude talks on the project led by Total, so we can resume, following the public announcement of the lifting of ‘force majeure’. At this moment, there has already been official communication,” said the Head of State, Daniel Chapo, at the opening of the 20th Annual Private Sector Conference (CASP) in Maputo.

“We are working to close the points we consider important to close, for the benefit of both the Mozambican people and those investing, to resume the project as soon as possible,” Daniel Chapo added in the same speech. The President further assured that the Government works “seven days a week, 24 hours a day, for the resumption of the Rovuma projects,” in Cabo Delgado.

The matter concerns conditions proposed by TotalEnergies, in a letter delivered to the Mozambican Presidency on 24 October, communicating the decision to lift the ‘force majeure’ clause of the project, four years after suspension due to terrorist attacks in Cabo Delgado, but also pointing out the need for compensation for losses during the stoppage.

The extension of the concession proposed by TotalEnergies, leader of the consortium of Area 1 of the Rovuma Basin, northern Mozambique, would serve, according to the letter accessed by Lusa, to compensate for losses of 4.5 billion dollars (3.87 billion euros) for the period of suspension of the megaproject.

In the letter signed by the president of TotalEnergies, Patrick Pouyanné, notifying the decision to lift the ‘force majeure’ clause, the request is justified to “partially compensate the economic impact” of the stoppage due to terrorist attacks in Cabo Delgado, acknowledging that security conditions for resumption are now met.

“, the Concessionaire respectfully requires the Government to grant an extension of the term of the Golfinho-Atum Development and Production Period under the EPCC [Exploration and Production Concession Contract] by a duration of 10 years,” it reads.

It adds that “as a final step before fully relaunching the project,” the Mozambique LNG Concessionaire “looks forward to receiving the approval by the Government of Mozambique of the revised project cost 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 dollars,,” it further states.

The megaproject involved is worth 20 billion dollars (17 billion euros). The concessionaire now indicates that the first delivery of liquefied natural gas (LNG) from the first line to be installed in Afungi, Cabo Delgado, has been postponed from July 2024, as originally planned, to the “first half of 2029.”

Mozambique has three approved megaprojects for the development and exploitation of LNG reserves in the Rovuma Basin, ranked among the largest in the world, off the coast of Cabo Delgado, including this one by TotalEnergies (13 mtpa), in resumption phase following suspension due to terrorist attacks in the region, and another by ExxonMobil (18 mtpa), worth 30 billion dollars (26.1 billion euros), awaiting final investment decision, both on the Afungi peninsula.

Also included is the Italian Eni project, which has been producing about seven mtpa since 2022 from the Coral South floating platform, which will be duplicated from 2028 with the second Coral North platform, in a 7.2 billion euro (6.2 billion pounds) investment.

Source: Lusa