TOTALEnergies has refuted claims of contract suspensions at its Mozambique LNG site, stating it is not renewing expired contracts instead. The company reiterated its force majeure status while preparing for a future project restart. Improved security conditions and loan re-approvals are ongoing focal points for the project.
TOTALEnergies has recently clarified reports regarding the suspension of contracts with subcontractors at its Liquefied Natural Gas (LNG) site in Mozambique’s Afungi Peninsula. The company stated that it is merely not renewing contracts that have reached their expiration, rather than suspending them altogether.
Maxime Rabilloud, TOTALEnergies’ country manager in Mozambique, emphasized that the company remains in a state of force majeure, which precludes the project’s immediate restart. He added, “Everyone knows that we are still in a situation of force majeure… we are doing a lot of preservation work and preparing for a restart.” This statement was made during a press conference following a meeting with Cabo Delgado province’s governor, Valige Tauabo.
During the meeting, Rabilloud clarified that some operations do not require continuous work, leading to temporary demobilizations of subcontractors once specific projects conclude. He further pointed out that future tasks would commence following these periods of demobilization.
TOTALEnergies originally started operations at the LNG site in late 2019 but had to suspend activities in April 2021 due to attacks by Islamic insurgents in the region. Recent updates indicate that the security situation has improved, and the company is awaiting re-approval of a loan from the United States’ Export Import (EXIM) Bank, which is critical in funding over 20% of the project’s total cost of more than $20 billion.
In a managerial update, TOTALEnergies recently appointed Nicolas Cambefort as the new project manager for the Mozambique LNG initiative, taking over from Stéphane Le Galles, who had been with the project since its inception six years ago. Cambefort’s appointment is seen as a pivotal step in the project’s future.
In summary, TOTALEnergies has clarified that it is not suspending contracts but rather refraining from renewing those that have terminated. The company remains committed to preparing for a future project restart as security conditions improve. The recent managerial changes indicate a strategic shift in the management of the Mozambique LNG project as TOTALEnergies navigates its next steps in this important energy venture.
Original Source: africaoilgasreport.com
