New Delhi: Oil India Limited (OIL) said on Monday that the force majeure declared in 2021 on the Mozambique Area 1 Offshore Rovuma Basin LNG project has been lifted, paving the way for resumption of development work on the long-delayed facility. In a regulatory filing to the stock exchanges, the company said, “As the security situation has significantly improved, it is informed that the Area 1 concessionaires have decided to lift the Force Majeure.”
Follow Energy Watch on X
The Area 1 block, located in the gas-rich Rovuma Basin off the coast of Mozambique’s Cabo Delgado province, is one of East Africa’s largest natural gas discoveries. It covers an area of about 9,653 square kilometres and includes the Golfinho and Atum fields, which will supply feed gas to the onshore Afungi LNG facility.
OIL’s 4 percent stake in the project is part of an overall 10 percent interest jointly held with Oil and Natural Gas Corporation (ONGC) through Beas Rovuma Energy Mozambique Limited (BREML). The development is led by TotalEnergies SE, the project’s operator.
In its filing, OIL noted that the project’s initial phase was halted in April 2021 after “degradation of the security situation in Cabo Delgado Province of Northern Mozambique necessitated the Area 1 concessionaires to declare Force Majeure and suspend the development activities.” The project’s restart signals a significant shift for India’s upstream ambitions overseas, especially in terms of LNG security and diversification.
Mozambique’s Cabo Delgado region had witnessed an escalation of insurgent violence in 2020–21, forcing companies, including TotalEnergies, to evacuate personnel and halt work. Recent reports indicate a marked improvement in stability after security operations backed by regional forces.
The lifting of force majeure marks the formal restart of Mozambique’s first onshore LNG project, which had been on hold for over four years. Industry estimates suggest the project’s budget could rise by at least USD 4 billion owing to cost escalations and delays during suspension.
For OIL, the project represents a key overseas upstream asset that can contribute to India’s long-term energy diversification and LNG supply security. The company said the Area 1 project forms part of its global portfolio of strategic energy investments, alongside its interests in countries such as Russia, Venezuela, and the United States.
Follow Energy Watch on LinkedIN
When commissioned, the Mozambique LNG project is expected to supply cargoes to Asian and European buyers, potentially enhancing India’s access to affordable, long-term natural gas resources.
