TotalEnergies has clarified that it has not suspended contracts with subcontractors for the Mozambique LNG project on the Afungi peninsula in the Palma district of Cabo Delgado. The company admits, however, that it is not renewing contracts that have already come to an end, a process it considers natural given the project’s current situation.
The position was taken by the president of Mozambique LNG, Mazime Rabilloud, after a meeting with the governor of the province. He refuted reports in the media that the French oil company had suspended hundreds of workers linked to the gas exploration project in Area 1 of the Rovuma basin.
‘We all know that we are still in a situation of ‘force majeure’. I may even share some perspectives on this later, but at the moment it’s clear that there are still no conditions for restarting the project. In the meantime, we are carrying out various preservation works in preparation for a future resumption. These works, however, are not continuous, as some have a well-defined beginning and end. Unfortunately, when one of these operations is completed, there is a natural demobilisation, which will then be followed by the start of new works,’ said Rabilloud.
The Mozambique LNG project has been suspended since 2021, following the terrorist attacks that hit the town of Palma. Gas exploration in Area 1 of the Rovuma basin was initially planned for 2023, but the insecurity situation in the region led to the project being postponed indefinitely.
Rabilloud’s response comes after reports on the Africa Intelligence website that TotalEnergies had instructed the CCS consortium, made up of Saipem (Italy), Chiyoda (Japan) and McDermott (USA), to suspend operations and lay off workers.
Although there are no concrete forecasts for the resumption of the project, Rabilloud assured that TotalEnergies remains committed to maintaining the infrastructure and preparing the site for a possible restart of operations as soon as the safety conditions are deemed adequate.
