James Fisher says gets funds from suspended Mozambique LNG project

UK-based marine services provider James Fisher and Sons said it has received all outstanding funds due from the suspended LNG export project in Mozambique.

“The group has settled all outstanding claims in relation to the suspended LNG project in Mozambique and accordingly has withdrawn its arbitration proceedings,” James Fisher said in a statement on Wednesday.

According to the firm, the agreement settles claims in relation to work performed before the suspension of the LNG project and covers the group’s outgoings in relation to costs incurred during the suspension of the project in 2021.

Also, the terms of the settlement cover the group’s costs through 2022 in the event that the project does not resume in the short term, it said.

James Fisher said the funds would reduce net debt and provide further headroom against its year-end banking covenant tests, but it did not disclose the amount it had received or any additional information regarding the development.

The firm previously said that its business Subtech was working as the first subcontractor on preparing the LNG plant site near Palma. The contract included design and construction of a marine offloading jetty and dredging works.

Mozambique LNG work to resume next year?

To remind, France’s TotalEnergies declared force majeure on the $20 billion LNG project earlier this year following new attacks near the Afungi plant site.

The project’s EPC contractor is CCS JV, a venture between Saipem, McDermott, and Chiyoda.

Saipem’s finance chief Antonio Paccioretti recently said that the firm expects work on the giant Mozambique LNG project to resume around mid-2022.

TotalEnergies had previously expected to launch the project in 2024 but the start date will move for at least one year.

Mozambique LNG includes the development of offshore gas fields in Mozambique’s Area 1 and a 12.8 mtpa liquefaction plant at the Afungi complex.

Also, the project will have a fleet of dedicated LNG carriers.

Besides TotalEnergies, other partners in the project are Japan’s Mitsui, Mozambique’s ENH, Thailand’s PTT, and Indian firms ONGC, Bharat Petroleum, and Oil India.

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