Oil India expects the US$20 billion Mozambique liquefied natural gas (LNG) project operated by TotalEnergies to resume operations by the end of 2025, following years of suspension caused by unrest in the region.
The development, located in Mozambique’s gas-rich Rovuma Basin, is one of the largest LNG investments in Africa and is seen as a crucial supply source for Asian and European markets.
The project’s joint venture structure sees TotalEnergies holding a 26.5 per cent operating stake, while Oil India, ONGC Videsh and Bharat PetroResources collectively control 30 per cent. Mitsui & Co. owns 20 per cent, Mozambique’s state-owned Empresa Nacional de Hidrocarbonetos (ENH) holds 15 per cent, and Thailand’s PTTEP makes up the remaining interest.
The Golfinho-Atum Mozambique LNG Project, sanctioned in June 2019 after a final investment decision (FID), is designed to include two LNG trains with a combined capacity of 13.12 million tonnes per annum (mtpa).
Long-term sales agreements covering 11.13mtpa have already been signed with buyers in India, Japan, China, France, and other European states, securing a strong market foundation for exports.
Financing for the development was completed in March 2021, enabling the awarding of major construction contracts for both onshore and offshore facilities.
However, progress was abruptly halted in April 2021 when TotalEnergies announced force majeure, citing escalating security concerns linked to militant activity in Mozambique’s Cabo Delgado province.
According to Oil India’s 2024–25 annual report, JV partners now anticipate lifting the force majeure status and resuming activities as security conditions improve.
Oil India chairman Ranjit Rath said: “With improved security conditions, the project is expected to restart in the second half of 2025 and is well-positioned to meet the growing demand of the Indian gas market.
“Oil India has received dividends equivalent to 91 per cent of its investment in the Russian projects.
“A highlight of the year was the robust dividend flow from Russian assets, amounting to US$942m, representing over 91 per cent of our original investment in Vankorneft and Taas-Yuryakh, with full recovery expected in the coming year.”
For Oil India, the Rovuma Area 1 asset represents significant reserves, with its share estimated at 16.21 million tonnes of oil equivalent of natural gas and 460,000 tonnes of condensate as of March 2025.
The restart of LNG activities is expected to support both national energy demand in India and broader global market stability, particularly as Europe continues to diversify gas supplies.
In 2023, TotalEnergies released a detailed report outlining an action plan for recommencing operations in Mozambique.
The plan covered workforce security measures, community engagement strategies, and phased re-entry for contractors.
Industry analysts expect these steps to be critical in rebuilding investor confidence and ensuring sustained project momentum once activities resume.
The Mozambique LNG project is also being closely monitored by regional authorities, given its potential to boost local employment, infrastructure development, and state revenues through ENH’s participation.
Stakeholders are optimistic that restarting construction will mark a turning point for Mozambique’s energy sector, positioning the country as a leading LNG exporter over the next decade.
