Oil & Gas

Following the discovery of important quantities of natural gas in the Rovuma Basin off the coast of Northern Mozambique in 2010, the $20 billion final investment decision was announced in June 2019 and the external financing agreement signed in July 2020. But, in April 2021, considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, TotalEnergies confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site. This situation leads TotalEnergies, as operator of Mozambique LNG project, to declare force majeure. 

Approximately 65 trillion cubic feet (the equivalent of 12 billion barrel oil field) of recoverable natural gas were discovered in Offshore Area 1. The results of the drill stem testing (DST) program in the Prosperidade and Golfinho/Atum complexes demonstrate the outstanding flow characteristics of the reservoirs. Each flow test successfully flowed at facility-constrained rates of 90 to 100 million cubic feet per day (MMcf/d), which supports well designs of 100 to 200 MMcf/d. initial plans are for a two-train project with scope to expand up to 43 million tonnes per annum (Mtpa).

Mozambique’s geographic location means the country is well-positioned to meet the needs of customers in the Atlantic and Asia-Pacific markets, and to tap into the growing demand for energy in the Middle East and Indian sub-continent. As the world’s second largest LNG player and the leading energy player in Africa, TotalEnergies is uniquely positioned to deliver a project which represents an extraordinary opportunity to meet increasing world demand for a sustainable, reliable and cleaner source of energy

Opportunities for Mozambican business and local workforce

In partnership with the Government of Mozambique, our focus is to increase the competitiveness of local companies to maximize opportunities for local participation.

The project has a goal of awarding $2.5 billion in contracts to Mozambican owned or registered companies. This represents more than one third of our total onshore contract, with the bulk of the rest being spent on highly specialized, technical goods and services that cannot currently be sourced in Mozambique.

It's expected that TotalEnergies’ teams will:

• Working with major contractors to disseminate details of contracting opportunities with the project so that local businesses have the information they need to bid;
• Conducting dedicated workshops in areas we know are holding local businesses back;
• Supporting the certification of local businesses ensuring they meet the standards the project requires;
• Looking at several broader capacity building initiatives.

A project of this scale also presents a significant opportunity for the training and development of the local workforce. The 5,500-strong Mozambican construction workforce has already delivered the new Quitunda Village, the Afungi airstrip, the Palma-Afungi highway and a raft of other projects essential for the construction of the LNG facility.

Beyond construction, the Mozambique LNG project will support local positions in many areas, including community development, procurement, engineering, law, finance, geoscience, health and environment, human resources, information technology, logistics and maintenance