Bharat Petroleum Corporation Limited (BPCL), which holds a ten percent stake in the liquefied natural gas (LNG) megaproject in Cabo Delgado, Mozambique, anticipates a cost increase of up to €3,670 million for the project’s implementation.
The project, which has been on hold since 2021, includes three Indian companies – BPCL, ONGC Videsh, and Oil India that collectively hold a thirty percent stake in the area one consortium led by the French oil company TotalEnergies.
According to BPCL, the projected cost increase for the project ranges between $3,500 and $4,000 million, with the possibility of resumption this year. BPCL, which manages its stake through its Netherlands based subsidiary BPRL Ventures Mozambique, attributes the cost rise to the force majeure clause invoked due to terrorist attacks that halted the project in 2021.
The increase could push the total investment to between $19.5 billion and $20 billion, currently undergoing refinancing. As reported by 360mozambique.com, TotalEnergies, leading the area one consortium, is overseeing the construction of a natural gas power plant near Palma, which has been suspended since the 2021 terrorist attacks.
