FCC

Oil India Expects $20bn Mozambique LNG Project Restart This Year

2025-09-19

India’s state-run Oil India Ltd expects the $20-billion Mozambique liquefied natural gas (LNG) project, operated by TotalEnergies and in which it holds a stake, to resume development by the end of 2025, Chairman Ranjit Rath said on Thursday.

Construction was halted in 2021 and force majeure was imposed following a deadly attack on the site by Islamic State-linked insurgents.

“With improved security conditions, the project is expected to restart in the second half of 2025 and is well-positioned to meet the growing demand of the Indian gas market,” Rath stated at the company’s annual shareholder meeting.

TotalEnergies CEO Patrick Pouyanne indicated in June that development could resume “this summer”.

TotalEnergies, the project operator, holds a 26.5 per cent stake, followed by Mitsui & Co with 20 per cent, and Mozambique’s state-owned ENH with 15 per cent. Indian state firms ONGC Videsh, Bharat PetroResources, and Oil India collectively own 30 per cent, while Thailand’s PTTEP holds the remainder.

Oil India also retains minority stakes in the Vankorneft and Taas-Yuryakh projects in Russia.

Rath highlighted the strong returns from these Russian assets, noting that Oil India received dividends equivalent to 91 per cent of its initial investment.

“A highlight of the year was the robust dividend flow from Russian assets, amounting to $942 million, representing over 91 per cent of our original investment in Vankorneft and Taas-Yuryakh, with full recovery expected in the coming year,” he said.

Tags :