TOTAL Declares Force Majeure
Maputo, April 26, 2021 - Speaking today at a press conference, the Chairman of INP, Carlos Zacarias, informed that Total E&P Mozambique Area 1, Limitada, the Rovuma Basin Offshore Area 1concessionaire and operator, declared with its partners, Force Majeure, due to the security situation, caused by the insurgency in Afungi, northern Cabo Delgado Province.
On the occasion, Zacarias confirmed that all field activities related to the construction of the infrastructure of the Golfinho/Atum Project are temporarily suspended and should be resumed as soon as the security situation is restored. The decision stems from the need to mitigate the negative effects arising from the application of contracts and costs in goods and services that cannot be provided or used during the period when operations are suspended, which would have negative effects on the overall cost of the Project.
He also stated that Total's suspension of operations is intended to ensure the physical integrity and safety of the workers as well as the protection of the infrastructure. Meanwhile, "despite this suspension, Total is maintaining the necessary work at its offices while it analyzes the real impact of the situation on the Project's implementation schedule, financing and the position of the financiers with the Empresa Nacional de Hidrocarbonetos, ENH. E.P. and the Government," stressed Zacarias.
With the temporary interruption of operations, Total will not be able, during this period, to meet its contractual obligations and may also suspend or terminate further contracts with other goods and/or services providers depending on how long the interruption may last. Meanwhile, Zacarias made it known that the Mozambican authorities are continuing to work to restore normal safety conditions, to ensure that the Project's operations can be resumed as soon as possible.
Since inaccurate and speculative information about Total's withdrawal is circulating, INP's Chairman clarified that the company has not abandoned the Project, and remains as Concessionaire and Operator, with all the rights, duties and obligations resulting from the Concession Contract for Exploration and Production in Area 1, signed with the Government in 2006.
Remember that the Liquefied Natural Gas Project "Golfinho/Atum LNG Project (Mozambique LNG)", will be implemented from an onshore platform, at an investment of USD 20 billion, to enable the exploration of 13.12 MTPA of recoverable natural gas, over a period of 25 years, and generate direct profits of USD 60.8 billion of which about USD 30.9 billion to the State during 25 years. The Project also foresees the provision of USD 2.5 billion to cover expenses related to the contracting of goods and services to be supplied by Mozambican companies to the LNG project, during the construction phase of the plant, in addition to employment and training opportunities for national citizens.
The Final Investment Decision for the Golfinho/Atum Project was announced on June 18, 2019, and is expected to come into production in 2024.
Total E&P Mozambique Area 1 Limited, is the operator of Area 1, with a 26.5% participating interest, in partnership with ENH Rovuma Area One, S.A. (15%), Mitsui E&P Mozambique Area 1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%) and PTTEP Mozambique Area 1 Limited (8.5%).
For more information please contact the Communication Unit by email at comunicacao@inp.gov.mz or by phone 21248300.