Uncertainty over LNG project in Mozambique

Increased uncertainty has gripped the $20 billion LNG project in Mozambique, in which Indian state firms have a 30% stake after French energy giant Total declared force majeure following a rise in violence.

Total, the operator of the Mozambique project, has declared force majeure and evacuated all the personnel and contractors from the project area due to the ‘evolving security situation’, ONGC, BPCL, and Oil India separately informed the stock exchange.

ONGC owns 16% participating interest in the project while BPCL and Oil India own 10% and 4% interest, respectively. Increasing violence, including attacks by Islamic State-linked militants, in Mozambique, especially closer to the LNG project site has shaken the confidence of the operator.