Oct 31 (Reuters) - Mozambique's government may have

counter-arguments to the updated budget and schedule proposed by

TotalEnergies for the liquefied natural gas (LNG)

project it is leading in the Southern African country, President

Daniel Chapo said.

The French oil major told Mozambique's president on Friday

that the Mozambique LNG consortium estimated its costs had risen

by $4.5 billion in the four years the project has been on hold

because of an Islamist militant attack in 2021.

TotalEnergies and its partners want the development and

production period extended by 10 years as partial compensation.

On the proposal to extend the period of the contract,

Chapo said: "We will have to sit down and perceive in detail the

foundations for this extension, ... there may also be

counter-arguments from the government."

Mozambique will conduct a similar exercise on the higher

costs proposed by TotalEnergies, and "on our side, there will

also be, without any doubt, counter-arguments," Chapo said,

according to a recording of remarks he made at a press

conference that was shared with Reuters by Chapo's spokesperson.