*

Exxon and Total's LNG projects in Mozambique share onshore

facilities

*

Mozambique government has not given date when it will

approve

Total's project terms request

*

Exxon has said it sees final investment decision on

project in

early 2026

By Sheila Dang

HOUSTON, Oct 30 (Reuters) - Exxon Mobil ( XOM ) is

unable to make a final investment decision on a $30 billion

liquefied natural gas project in Mozambique called Rovuma LNG

until TotalEnergies resumes work on a related project

nearby, according to a source familiar with the matter.

Exxon is affected by TotalEnergies' project because they

include shared facilities.

The French firm confirmed on Saturday that it had lifted a

four-year force majeure on its $20 billion Mozambique LNG

project.

MOZAMBIQUE, TOTALENERGIES DISCUSSING RESTART OF PROJECT

In a letter to the Mozambique government, TotalEnergies said

its costs had risen by $4.5 billion and requested that the

country grant an extension of the development and production

period by 10 years.

Mozambique is pushing back against that request, deeming the

$4.5 billion amount too high, a source close to the government

told Reuters. Spokespeople for the government did not respond to

a request for comment.

TotalEnergies' CEO told investors on Thursday that its

letter to the government had been misinterpreted, that the

company will be able to quickly restart the project, and that

the $4.5 billion cost increase is included in its $20.5 billion

budget.

Mozambique's President Daniel Chapo visited the U.S. this

week and held talks at Exxon's headquarters in Spring, Texas on

Wednesday, but a scheduled press conference was cancelled.

In a press statement on Wednesday, he announced that the

country had signed two memorandums of understanding with Exxon

to evaluate domestic gas projects and build a training center to

develop the Mozambican workforce.

TotalEnergies did not immediately respond to a request for

comment, but pointed to September 29 comments from CEO Patrick

Pouyanne in which he said Total coordinated closely with Exxon

and both firms believed operations could restart quickly.

EXXON HOPES TO MAKE ROVUMA LNG DECISION EARLY IN 2026

Exxon has said it hopes to take a final investment decision

on Rovuma LNG in early 2026, with a first cargo by 2030.

Work on Mozambique LNG in the Area 1 offshore block has been

halted for four years following an Islamist-linked insurgent

attack.

The ongoing delays have highlighted the challenges

Mozambique still faces to become a major LNG exporter and

develop its economy.

Exxon and Italian energy firm Eni each hold 25%

stakes in the southern African country's Area 4 offshore block,

which is estimated to hold more than 85 trillion cubic feet of

natural gas.

Exxon is leading the construction and operation of the

Rovuma LNG onshore liquefaction facilities, while Eni is leading

the floating production units in the deepwater block dubbed

Coral North and South.

Completion of the Eni, Exxon and TotalEnergies projects

could make Mozambique a top 10 global gas producer by 2040,

consulting company Deloitte said in a report last year.