Mozambique Audit Raises Questions Over TotalEnergies LNG Cost Claims

An independent audit commissioned by the Mozambican government has reportedly identified a US$2 billion cost discrepancy linked to the suspension of TotalEnergies’ flagship liquefied natural gas development in northern Mozambique, adding fresh scrutiny to one of Africa’s largest energy investments.

According to sources cited by Lusa, the French energy major submitted preliminary claims exceeding US$5 billion under force majeure provisions following the April 2021 insurgent attacks in Cabo Delgado, bringing work on the Mozambique LNG project to a halt. However, auditors are said to have verified documentation for only around US$3 billion of those costs, leaving an apparent shortfall of approximately US$2 billion.

The audit centres on expenditure incurred during the project’s nearly five-year suspension and comes as TotalEnergies awaits final government approval for the development plan covering Area 1 of the Rovuma Basin — a cornerstone asset in Mozambique’s ambitions to become a major LNG exporter.

Mozambique’s government confirmed that the review is nearing completion but declined to comment on preliminary findings.
The audit was assigned to UK-based consultancy Bayphase, which was tasked with reviewing recoverable costs across LNG developments in the Rovuma Basin. Its mandate includes verifying whether expenditure aligns with fair market value benchmarks and complies with cost recovery provisions outlined in the respective production concession agreements.
The findings emerge at a pivotal stage for the US$20 billion Mozambique LNG development. In January, Mozambican President Daniel Chapo and TotalEnergies chief executive Patrick Pouyanné formally marked the project’s restart at Afungi in Cabo Delgado, signalling renewed momentum after years of uncertainty.

At the ceremony, Pouyanné declared that force majeure had ended and reiterated that Mozambique LNG remains TotalEnergies’ largest investment on the African continent. Chapo, meanwhile, stressed that while the cost-verification process continues, project execution would proceed.

The suspension period remains a critical point of negotiation between the company and the state. Mozambique’s cabinet approved an independent audit in November to assess costs accumulated during force majeure and validate expenditure before any recovery claims are recognised.
Government officials have also maintained that the decision to halt construction in 2021 was taken unilaterally by TotalEnergies. While the company has reportedly sought an extension of more than a decade to compensate for delays and associated losses, Maputo has reaffirmed that the original 30-year development and production concession remains intact, with allowances made only for the suspension and remobilisation period.

The broader significance of the audit extends beyond cost recovery. Mozambique LNG is central to the country’s long-term economic strategy and a major contributor to East Africa’s emerging role in global gas supply. For investors and project partners, the government’s handling of the review is likely to be closely watched as a test of regulatory transparency and project governance.

TotalEnergies continues to target first LNG production from Afungi in the first half of 2029, a timeline that will be closely monitored as the project transitions from remobilisation to full-scale development.