LNG

Mozambican President Filipe Nyusi confirmed that Islamist terrorists had occupied the town of Macomia in a northern part of Cabo Delgado, Mozambique’s province where an onshore LNG plant is being constructed further south and may now face more delays.

TotalEnergies, the operator of the Mozambique onshore liquefied natural gas project, is moving towards re-starting the joint venture once the recommendations of a commissioned humanitarian report are carried out during 2023.

French major Total has declared ‘force majeure’ on the Mozambique LNG export project over growing conflict in the north of the Southeast African nation, leading to workers being withdrawn and doubts increasing over whether security would return soon to the northern Cabo Delgado province.

French energy major Total said resumption of a full work programme scheduled at the Mozambique LNG export project had been postponed after another attack by extremists in the north of Cabo Delgado province.

European energy major Total has formally resumed a full work schedule on the Mozambique LNG export project after the government in the southeast African nation improved security arrangements in Cabo Delgado province.

French major Total SA has changed its name to Total SE on global stock markets to identify as a European rather than a French company just after it confirmed that project financing was in place for the Mozambique LNG project using Area 1 feed-gas in the Rovuma Basin.

“Total has registered with the Trade and Companies Register of Nanterre (near Paris) as a European Company,” said Total.

The new SE addition means “Societas Europaea (SE)”, Latin for European company. The Total name was previously followed by the French term “Société anonyme (SA)” , meaning a public limited company, the equivalent of Plc in English.

“This follows negotiations with employees’ representatives in 25 countries of the European Economic Area,” added Total, which has a global workforce of around 100,000 people.

It noted that members of the Special Negotiating Body for management and unions had approved and signed an agreement relating to the procedures for the involvement of employees in this new European Company.

“The Company will now be listed as Total SE on stock markets trading its shares and American Depositary Shares,” explained Total.

However, its identifying ticker on the Paris Euronext exchange (FP) and New York Stock Exchange (TOT) will remain unchanged.

The shares were last trading at €33.83 per share, down 1.75 percent, and valuing the company at around €88.45 billion ($101Bln).

The change to Total's name was announced as the energy major's Chief Financial Officer Jean-Pierre Sbraire said that he was pleased with the signing of the $14.9-billion senior debt financing agreement for Mozambique LNG.

The joint venture includes the development of the Golfinho and Atum natural gas fields located in Offshore Area 1 concession and the construction of a two-Train liquefaction plant with a total capacity of 13.1 million tonnes per annum.

“The signing of this large-scale project financing, less than one year after Total assumed the role of operator of Mozambique LNG, represents a significant achievement and a major milestone for the project,” declared CFO Sbraire.

“It demonstrates the confidence placed by the financial institutions in the long-term future of LNG in Mozambique,” he added.

“This key milestone has been reached thanks to the dedication of the Mozambique authorities and the financial partners of the project,” stated the CFO.

Total said that the African venture represented a total post-financial investment decision outlay of $20Bln.

“The project financing amounts to $14.9Bln, the biggest ever in Africa, and includes direct and covered loans from eight Export Credit Agencies (ECAs), 19 commercial bank facilities and a loan from the African Development Bank,” Total explained.

The ECAs that participated in the financing included Export Import Bank of the United-States (US-Exim), Japan Bank for International Corporation (JBIC), Nippon Export and Investment Insurance (NEXI), UK Export Finance (UKEF), Servizi Assicurativi del Commercio Estero of Italy (SACE), Export Credit Insurance Corp. of South Africa (ECIC), Atradius Dutch State Business (Atradius) and Export-Import Bank of Thailand (EXIM Thailand).

The Area 1 shareholding has Total as operator with a 26.5 percent participating interest alongside Mozambican state energy company ENH (15 percent).

Japan’s Mitsui & Co. owns 20 percent, India’s ONGC Videsh, Bharat PetroResources and Beas Rovuma Energy each hold 10 percent and Thailand’s PTTEP 8.5 percent. 

French energy major Total said it planned to expand its Mozambique liquefied natural gas project with up to two additional processing Trains, taking the total up to four Trains.

ExxonMobil said it planned to invest more than $500 million in the initial construction phase of its liquefied natural gas project in Mozambique as part of the Area 4 resources development with its partners including Italian energy company Eni and China National Petroleum Corp.

The Mozambique government said US energy giant Exxon Mobil and partners such as PetroChina have finalized their investment plan for the southeast African nation’s Mamba LNG project backed by offshore Rovuma Basin resources and would hold a signing ceremony on October 8 in the capital Maputo.

French energy major Total said it paid $3.9 billion to close the acquisition of Anadarko Petroleum’s 26.5 percent operated interest in the Mozambique LNG project from Anadarko purchaser Occidental Petroleum.