ONGC Videsh lifts Force Majeure on multi-billion dollar Mozambique LNG Project
ONGC Videsh has lifted the Force Majeure on its multi-billion-dollar Mozambique LNG project, marking a key step toward resuming operations and strengthening India’s global energy footprint.
ONGC Videsh lifts Force Majeure on multi-billion dollar Mozambique LNG Project
Mumbai, Nov 13
ONGC Videsh on Tuesday last announced the lifting of the Force Majeure on the multi-billion dollar Mozambique LNG Project, which clears the way for the restart of stalled construction activities.
During the earning call on November 11 as confirmed by a source to Bizz Buzz, Vivek Tongaonkar, Director of Finance at ONGC, said, "It is expected that both the parties, that is all the contracting parties and the government of Mozambique, have already more or less arrived at a finalization of lifting this FM, and this is likely to happen in a couple of days.”
As of now, all the partners have decided to lift the force majeure. We are expecting that ballot to happen either today or tomorrow. Once that happens, then it would be officially that force majeure would be lifted. However, till the ballot happens, it would not be a final event, so to say. Maybe in a couple of days, we should be in a position to confirm that, he said.
The consortium operating the project has formally notified the Government of Mozambique of the withdrawal, effective immediately. The Force Majeure had been in place since May 2021 due to security issues in the Cabo Delgado province, which have now "significantly improved."
"Security situation in Cabo Delgado Province (CDP), north of Mozambique, Area 1 Mozambique LNG Project has significantly improved, and Area 1 Mozambique LNG consortium has accordingly notified the Govt of Mozambique to end the Force Majeure which was declared on 11 May 2021. Withdrawal of the Force Majeure enables construction activities to restart for early completion of project," ONGC said in a statement.
OVL, the overseas arm of India's Oil and Natural Gas Corporation (ONGC), holds a 16% stake in the 13.12 million tonnes per annum (MMTPA) liquefied natural gas project. The project is operated by TotalEnergies (26.5% PI), with other partners including ENH, Mitsui, and India's Bharat Petro Resources Ltd. Resuming work is now targeted for early completion of the critical energy infrastructure.
EoM.
