Bharat Petroleum Corporation Ltd (BPCL) has announced that the Area 1 Mozambique LNG Project Consortium partners have resolved the Force Majeure, initially declared in April 2021 due to security concerns. Construction activities, which were suspended, are set to resume. BPCL, through its subsidiary BPRL Ventures Mozambique B.V., holds a 10% participating interest in the Area 1 concession.
Mozambique LNG Project Update
Bharat Petroleum Corporation Ltd (BPCL) has provided an update regarding the Area 1 Mozambique LNG Project. The Force Majeure, which was declared in April 2021, has now been resolved by the project consortium.
Background of Force Majeure
The Force Majeure was initially issued due to the deterioration of the security situation in the Cabo Delgado province. This led to the suspension of construction activities that had commenced in 2019.
Resumption of Activities
With improved security conditions, the Area 1 Mozambique LNG Project Consortium partners have decided to resolve the Force Majeure, paving the way for the resumption of construction activities.
BPCL’s Stake
BPRL Ventures Mozambique B.V., an overseas step-down subsidiary of Bharat PetroResources Ltd. (BPRL), holds a 10% Participating Interest (PI) in the Area 1 concession. BPRL is a wholly-owned subsidiary of BPCL.
Project Partners
The Total EP Mozambique Area 1 Limitada, operates Area 1, Mozambique LNG with a 26.5% participating interest alongside ENH Rovuma Área Um, S.A. (15%), MIT Rovuma Offshore SU LDA (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%) and PTTEP Mozambique Area 1 Limited (8.5%).
Source: BSE
