Italian energy services group Saipem said that efforts to restart a multi-billion euro LNG project in Mozambique for TotalEnergies were underway, but refrained from giving a precise timetable.
The project, which would be the first onshore development of an LNG plant in this African country, was frozen in 2021 due to security and human rights concerns in the province of Cabo Delgato, where it will be located.
In a post-results conference call, Saipem CEO Alessandro Puliti said that last week he had visited the site where the large-scale liquefied natural gas (LNG) plant would be installed.
« J’ai passé une journée à Afungi… l’activité de relocalisation est presque terminée et toute la durabilité sociale (travail) que fait la joint-venture mozambicaine est très impressionnante », a déclaré Puliti, faisant référence au transfert d’un village hors du site. où l’usine sera construite.
TotalEnergies is the sole operator of the project, with a 26.5% stake. The other shareholders are Mozambique's ENH, Japan's Mitsui & Co, Thailand's PTTEP and India's ONGC Videsh, Bharat Petroleum and Oil India Ltd.
Puliti said his company was working with the project's shareholders to agree additional costs for restarting the project, which is worth around 3.5 billion euros ($3.9 billion) to the group.
« Je ne peux pas donner de chiffre mais on parle de surcoûts pertinents sur lesquels nous négocions actuellement avec des sous-traitants. »
In February, TotalEnergies commissioned Jean-Christophe Rufin, an expert in humanitarian action and human rights, to lead an independent mission to assess the humanitarian situation in the province before deciding whether to resume operations.
As regards its financial results, Saipem reported a net profit of 40 million euros in the first half, compared with a net loss of 130 million euros in the same period last year, when it had to cope with cost overruns on some major offshore wind projects. .
The group, whose main investors include Italian state-owned energy company Eni ENI.MI and Italian state-owned lender CDP, said it was nearing completion of some problematic offshore wind projects. Saipem confirmed its 2023 forecasts.