New Delhi: ONGC Videsh Limited (OVL) has said in a statement issued Wednesday that the force majeure that was in effect since May 2021, has been lifted from the Mozambique LNG Project. OVL, the wholly owned overseas subsidiary of Oil and Natural Gas Corporation (ONGC), holds a 16% stake in the Area 1 concession in Mozambique through its subsidiaries ONGC Videsh Rovuma Limited (OVRL) and Beas Rovuma Energy Mozambique Limited (BREML).
The Mozambique LNG project in Area 1 is operated by Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of TotalEnergies SE, which holds a 26.5% Participating Interest (PI). Other partners include ENH Rovuma Area Um, S.A. (15%), Mitsui Rovuma Offshore Area 1 Limited (20%), OVRL (10%), BREML (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).
Construction of the 13.12 million tonnes per annum (MMTPA) LNG project began in 2019 but was disrupted due to the deteriorating security situation in the northern Cabo Delgado province. As a result, the Area 1 Mozambique LNG Project declared Force Majeure in May 2021, suspending all construction activities.
The security situation in Cabo Delgado has since improved significantly. Accordingly, the Area 1 Mozambique LNG consortium has notified the Government of Mozambique to withdraw the Force Majeure declared on May 11, 2021. The lifting of the Force Majeure allows construction activities to resume, aiming for early completion of the project.
OVL stated, “During the construction of 13.12 MMTPA LNG project, due to the deterioration of the security situation in the north of Cabo Delgado province, the Area 1 Mozambique LNG Project issued a declaration of Force Majeure in May 2021 and suspended the construction activities that had commenced in 2019.”
The restart of the project comes amid ongoing regional security challenges, but it marks a critical step toward realizing Mozambique LNG’s potential as a major global LNG supplier. Completion of the project will contribute significantly to Mozambique’s economy and the global energy market. TotalEnergies remains the main operator and stakeholder, with other partners actively collaborating to advance the project’s development.