MAPUTO, May 27 – Mozambique is challenging billions of dollars in costs claimed by TotalEnergies and its partners following the prolonged suspension of the country’s flagship liquefied natural gas project, adding fresh uncertainty to one of Africa’s largest energy developments.
According to Bloomberg News reports, the dispute centers on approximately $2 billion in expenses linked to the years-long interruption of the project after security concerns halted operations in northern Mozambique.
The disagreement reportedly emerged after an independent audit conducted by UK-based consultancy Bayphase reviewed costs associated with the force majeure period declared after militant attacks disrupted operations in 2021.
The audit reportedly found that a significant portion of the claimed costs could not be fully verified because of insufficient supporting documentation, leading Mozambican authorities to question parts of the estimates presented by the project partners.
Agreement over the disputed costs is considered important before the government can approve an updated development framework for the LNG facility.
Patrick Pouyanné had previously estimated the revised overall project cost at roughly $20.5 billion following the extended disruption.
The LNG development, led by TotalEnergies with a 26.5% stake, also includes participation from Japanese, Indian, Thai and Mozambican partners.
Officials indicated that discussions between the parties are continuing and negotiations could still produce a compromise agreement.
Mozambique’s government confirmed that it commissioned the audit but declined to comment further on the details while the process remains ongoing.
The project is viewed as economically significant for Mozambique, which hopes future natural gas exports could transform public finances and support long-term economic development in one of the world’s poorest countries.
However, prolonged delays have already pushed back anticipated revenues and complicated broader development plans tied to the energy sector.
The LNG facility was suspended in 2021 after insurgent attacks linked to Islamic State militants forced TotalEnergies to evacuate staff from the project area.
According to reports, the audit reviewed thousands of financial transactions linked to the suspension period and was able to verify approximately $3 billion in costs through contracts, invoices and supporting records.
The outcome of the negotiations could influence both the timeline for restarting full project development and the future financial returns expected by the Mozambican state once production begins.
