Total (NYSE: TOT) declared force majeure on its Mozambique LNG project on Monday.
In a statement posted on its website, the company noted the evolution of the security situation in the north of the Cabo Delgado province in Mozambique and confirmed the withdrawal of all Mozambique LNG project personnel from the Afungi site.
“Total expresses its solidarity with the government and people of Mozambique and wishes that the actions carried out by the government of Mozambique and its regional and international partners will enable the restoration of security and stability in Cabo Delgado province in a sustained manner,” Total said in the statement.
In August last year, Total revealed that it had signed a memorandum of understanding (MOU) with the Government of Mozambique regarding the security of Mozambique LNG project activities. The MOU provided that a joint task force would ensure the security of Mozambique LNG project activities in Afungi site and across the broader area of operations of the project, Total noted in a company statement at the time.
In July 2020, Total announced the signing of a $14.9 billion senior debt financing agreement for the Mozambique LNG project, which is the country’s first onshore LNG development. Mozambique LNG represents a total post-financial investment decision investment of $20 billion, the company outlined in July last year.
Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of Total, operates Mozambique LNG with a 26.5 percent participating interest alongside ENH Rovuma Área Um, S.A., which holds a 15 percent stake, Mitsui E&P Mozambique Area1 Limited, which holds a 20 percent stake, ONGC Videsh Rovuma Limited, which holds a 10 percent interest, Beas Rovuma Energy Mozambique Limited, which holds a 10 percent interest, BPRL Ventures Mozambique B.V., which has a 10 percent stake, and PTTEP Mozambique Area 1 Limited, which holds the remaining 8.5 percent interest.
To contact the author, email andreas.exarheas@rigzone.com
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