TOTALEnergies denies reports of contract suspensions at its Mozambique LNG site, clarifying that it is not renewing completed contracts due to ongoing force majeure conditions. The company emphasizes its commitment to preservation work and notes improving security and financing for future operations. Management updates signify a strategic shift towards resuming project work.
TOTALEnergies has refuted assertions regarding the suspension of contracts with subcontractors at its Liquefied Natural Gas (LNG) site in Mozambique’s Afungi Peninsula. The company clarified that it is simply not renewing contracts that have reached their completion, and emphasized ongoing preservation efforts in anticipation of the project’s restart.
Maxime Rabilloud, TOTALEnergies’ country manager in Mozambique, stated during a media conference in Pemba that the region is currently under a state of force majeure, indicating that project restart initiatives are not feasible at the moment. He underscored the significance of continuing preservation work amidst the circumstances.
Rabilloud held a press conference following a meeting with Cabo Delgado’s governor, Valige Tauabo, to delineate that the inability to renew contracts is distinct from an outright suspension of contract activities. He further explained that certain works are inherently temporary, necessitating demobilization before new projects can commence.
TOTALEnergies initiated work on the LNG site in late 2019 but had to suspend operations in April 2021 as a result of attacks by Islamic insurgents in the vicinity. The company has since indicated improved security conditions while waiting for reapproval of financing from the United States’ Export Import (EXIM) bank, which constitutes over 20% of the project’s budget.
In a recent organizational change, the company has appointed Nicolas Cambefort as the new project manager for the Mozambique LNG initiative, succeeding Stéphane Le Galles, who played a significant role in launching the project. Rabilloud mentioned that after six years, it was appropriate for Le Galles to transition to new ventures.
In conclusion, TOTALEnergies has clarified that it is not suspending contracts, but rather not renewing those that have concluded, while emphasizing its continued efforts in the ongoing preservation of the LNG project amid the prevailing force majeure conditions. The situation is gradually improving, as indicated by enhanced security and the anticipated reallocation of funding, which is crucial for the project’s continuation. Furthermore, recent management changes reflect the company’s proactive approach to reestablishing operations amidst challenges.
Original Source: africaoilgasreport.com
