American energy corporation ExxonMobil has officially announced the restart of its major liquefied natural gas (LNG) development in Mozambique, ending a four-year suspension caused by militant activities in the northern Cabo Delgado region.
Project Resumption and Key Details
The company confirmed on Thursday that it has lifted the force majeure status for the Rovuma LNG project in Area 4. This legal provision had been in place since 2021 when security concerns forced operations to halt.
ExxonMobil maintains a significant 25 percent stake in this ambitious onshore LNG facility. Current projections indicate the project will begin production around 2030, marking a crucial milestone for Mozambique's energy sector.
Security Context and Partnership Structure
The project's suspension followed a devastating jihadist offensive in March 2021 that resulted in approximately 800 casualties. According to conflict data organization Acled, the broader insurgency in Cabo Delgado has claimed over 6,200 lives since 2017.
The Area 4 block operates under Mozambique Rovuma Venture, a joint venture where ExxonMobil partners with Italian firm ENI and China's CNPC in a consortium holding 70 percent ownership. Remaining shares are distributed among XRG of Abu Dhabi, South Korea's KOGAS, and Mozambique's Empresa Nacional de Hidrocarbonetos, each holding 10 percent.
Future Outlook and Regional Developments
ExxonMobil emphasized its collaboration with Mozambican authorities and partners to ensure operational security. The Texas-based company stated that project planning is advancing significantly, with a final investment decision anticipated in 2026.
This development follows French energy company TotalEnergies' similar decision to resume its Mozambique operations in late October. The Mozambican government has announced an audit to assess losses from TotalEnergies' project suspension, though ExxonMobil hasn't confirmed whether it will seek similar compensation.
The resumption signals growing confidence in Mozambique's stability and represents a substantial economic opportunity for the southeastern African nation, potentially transforming its energy export capabilities.
