Mozambique says it may dispute TotalEnergies proposals on LNG project

Oct 31 (Reuters) - Mozambique's government may have counter-arguments to the updated budget and schedule proposed by TotalEnergies TTEF.PA 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.