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ExxonMobil relaunches natural gas project in Mozambique / Photo: ERIC PIERMONT - AFP/File
NYSE - LSE
ExxonMobil relaunches natural gas project in Mozambique
US energy giant ExxonMobil announced Thursday the resumption of its gas development project in Mozambique, which had been suspended for several years due to a jihadist insurgency.
"We have lifted force majeure (FM) for the Rovuma LNG project in Area 4," the company said in a statement, referring to a legal concept that is invoked to suspend a project when there are unforeseen or adverse conditions.
ExxonMobil holds a 25 percent stake in the planned onshore liquefied natural gas facility in the southeastern African country that is expected to begin production in 2030.
A jihadist insurgency in Cabo Delgado, a northern province, has left more than 6,200 people dead since 2017, according to the NGO Acled, which collects data on conflict zones.
However, it was a jihadist offensive in March 2021 that caused some 800 deaths and led oil companies to suspend their projects in the region.
According to ExxonMobil's website, Area 4 is operated by a joint venture called Mozambique Rovuma Venture.
The venture is 70 percent owned by a consortium -- ExxonMobil, the Italian ENI, and the Chinese CNPC -- while XRG (Abu Dhabi), KOGAS (South Korea), and Empresa Nacional de Hidrocarbonetos each hold a 10 percent stake.
"We are working with our partners and the government of Mozambique to ensure the safety of our people and facilities, as we look to develop a world-class LNG project that can help drive economic growth," said the oil giant, which is based in Spring, Texas.
It specified that planning was nearing completion and the final investment decision should be made during the course of 2026.
In October, ExxonMobil chief executive Darren Woods said the company was optimistic about moving ahead with a liquefied natural gas project in Mozambique, where NGOs have loudly criticized a plan by French petroleum giant TotalEnergies to resume work.
Woods that month hosted the president of Mozambique in Houston and rated the meeting as "really productive."
TotalEnergies announced on October 25 that it had lifted the force majeure and resumed its own project in Mozambique after operations were suspended for four years.
On Wednesday, Mozambique's government announced that it would audit losses caused by the suspension of the French group's project.
When AFP asked the company about it on Thursday, ExxonMobil did not indicate whether it also planned to seek compensation for losses.
T.Cusumano--INP
