Italian oilfield services company, Saipem, expects the $20 billion Mozambique LNG project to resume operations by mid-2022 following the declaration of a force majeure in April by oil and gas giant, TotalEnergies, due to a string of insurgent attacks in the north of the country earlier this year.
Construction activities have resumed, following the implementation of further safety measures by TotalEnergies and the Government of Mozambique at the Afungi production site near Cabo Delgado in the north of the country.
“In order to reach our revenues target in 2022, we also have to consider the contribution of Mozambique,” stated Antonio Paccioretti, Chief Financial Officer for Saipem.
Saipem leads the joint venture along with engineering and construction solutions provider, McDermott International and global engineering company, Chiyoda Corporation. The joint venture secured the engineering, procurement, and construction of the $8 billion Mozambique LNG project in June 2019, with Saipem contributing approximately $6 billion to the project.
Saipem stated that, as of the end of September, the LNG project has accumulated a backlog of approximately $4.18 billion, and that the company does not expect any significant contributions from the project for the remainder of 2021.
Once completed, the project is expected to have the capacity to produce approximately 12.8 million tons of LNG per year.
