Total SE declares force majeure at OVL, BPCL's Mozambique LNG project

New Delhi: The USD 20 billion liquefied natural gas project in Mozambique, where Indian firms hold a 30 per cent stake, has been suspended indefinitely after an escalation of violence in the area, according to a regulatory filing.

French energy giant Total SE, which is the project lead, declared force majeure on its LNG development in Mozambique, mothballing the investment, Bharat Petroleum Corporation Ltd (BPCL) said in a stock exchange filing Tuesday.

"Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, the Area 1 Operator, Total E&P Mozambique Area 1 Limitada, informed the withdrawal of all Mozambique LNG project personnel from the Afungi site. This situation leads Total E&P Mozambique Area 1 Limitada, as operator of Mozambique LNG project, to declare force majeure," it said.

BPRL Ventures Mozambique BV, an overseas subsidiary of Bharat PetroResources Ltd (BPRL) that is a wholly-owned subsidiary of BPCL, holds 10 per cent participating interest (PI) in the Area 1 concession. ONGC Videsh Ltd has 16 per cent interest and Oil India Ltd another 4 per cent.

Total E&P Mozambique Area 1 Limitada, a wholly-owned subsidiary of Total SE, operates Mozambique LNG with a 26.5 per cent participation.

Force majeure is a provision that allows parties to suspend or end contracts because of events that are beyond their control, such as wars or natural disasters.

The French energy major said it had activated the contractual get-out "considering the evolution of the security situation" in Mozambique's northernmost Cabo Delgado region.

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