TOTALEnergies Clarifies Misunderstanding Regarding Contract Suspensions in Mozambique

TOTALEnergies has denied rumors of suspending contracts at its LNG site in Mozambique, indicating it is only not renewing completed contracts. The company emphasizes ongoing preservation work, awaiting project resumption, and cites improved security conditions and continued financing efforts from the US Export Import Bank.

TOTALEnergies has refuted claims stating that it is suspending contracts with subcontractors at its Liquefied Natural Gas (LNG) site in Mozambique. The firm clarified that it is merely not renewing contracts that have already concluded. Maxime Rabilloud, the country manager in Mozambique, emphasized that the company remains in a force majeure situation and is engaged in preservation activities while awaiting a project restart.

During a press conference in Pemba, Rabilloud underscored that TOTALEnergies is not halting contractor engagements but rather addressing the cyclical nature of project completion. He noted that while some operations have concluded, future works will commence subsequently. The company has been involved in LNG site operations since late 2019 but had to pause due to violence from insurgents in early 2021.

Recent statements from TOTALEnergies indicate an improvement in the local security environment and continued efforts in securing funding from the United States’ Export Import Bank, which supports a significant portion of the project’s financial requirements. The company aims to advance its endeavors following an extended hiatus, reflecting its commitment to the project at the Afungi Peninsula.

In conclusion, TOTALEnergies has clarified that it is not suspending contracts with subcontractors at its LNG project in Mozambique but is instead following the natural timeline of contract completions without renewing some contracts. The company remains poised to continue operations pending improvements in security and financial backing, signaling a commitment to navigate challenges effectively as it prepares for future work.

Original Source: africaoilgasreport.com