Mozambique Contests TotalEnergies' $2 Billion Cost from LNG Project Delay

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The Mozambique government contests TotalEnergies' $2 billion claim for cost overruns due to LNG project delays caused by Islamist attacks threatening security near the site. The $20-billion Mozambique LNG project has been suspended for years with concerns about ongoing security impacting operations.

The government of Mozambique disagrees with TotalEnergies’ estimate that the years-long delay in the Mozambique LNG project has cost it and its partners $2 billion in overruns, a source familiar with the matter told Bloomberg on Wednesday. TotalEnergies and its partners in the $20-billion Mozambique LNG project had to suspend work and declare force majeure for several years amid serious concerns about security due to Islamist attacks near the site. A recent audit report by UK-based consultancy Bayphase could not confirm the costs TotalEnergies…