Sinopec Oilfield Service and TotalEnergies Sign Contract for Latavi Project

Sinopec Oilfield Service has signed a contract with TotalEnergies for the Latavi project, which will involve refining and chemistry operations, petroleum products distribution, and electricity generation. The project is part of TotalEnergies' global oil and gas operations, which include refining, trading, and distribution of petroleum products, as well as electricity generation and gas production. The contract is expected to contribute to TotalEnergies' growth and expansion in the energy sector.

TotalEnergies (NYSE: TTE) is set to resume work on its $20 billion Liquefied Natural Gas (LNG) project in Mozambique, following an improvement in the security situation. The project, which has been stalled for four years due to insecurity, will now see full-scale development as conditions have improved, according to BPCL managing director Sanjay Khanna.

The LNG project, located in Cabo Delgado province, has a liquefaction capacity of 13.1 million metric tons per year. TotalEnergies holds a 26.5% stake in the project, making it Africa’s largest private investment. India’s Bharat Petroleum Corp. Ltd (BPCL) has secured rights to market LNG from the project, holding a 10% stake, while three Indian public sector undertakings (PSUs) have a combined stake of 30%.

The security situation in Cabo Delgado has been volatile, with Islamic State-affiliated Jihadists active in the region. However, recent counterinsurgency operations led by Rwandan and Mozambican security forces have seen some success. Rwandan forces are now expected to guard the Afungi site, following a renewed security agreement between Mozambique and Rwanda.

The project’s resumption comes as Mozambique continues to grapple with the so-called resource curse, a phenomenon where natural resource abundance can lead to economic decline and political instability. Corruption and insecurity have long been challenges for the country, as seen in the case of South Sudan, where rampant corruption has compounded security challenges and put the country’s oil-driven economy at severe risk TotalEnergies Set To Revive Stalled $20B LNG Project In Mozambique^[1].

In a separate development, Sinopec Oilfield Service has signed a contract with TotalEnergies for the Latavi project. The project will involve refining and chemistry operations, petroleum products distribution, and electricity generation. This contract is expected to contribute to TotalEnergies' growth and expansion in the energy sector .

References
TotalEnergies Set To Revive Stalled $20B LNG Project In Mozambique^[1] https://oilprice.com/Energy/Natural-Gas/TotalEnergies-Set-To-Revive-Stalled-20B-LNG-Project-In-Mozambique.html
https://oilprice.com/Energy/Natural-Gas/TotalEnergies-Resumes-Mozambique-LNG-Project-Amid-Improved-Security.html