Law No. 8/2026, of 3 June, establishes that during force majeure events, each party must bear its own expenses, exempting the State from any obligation to compensate or reimburse costs incurred by concessionaires.
According to sources from the Ministry of Mineral Resources and Energy and the National Petroleum Institute (INP), cited by the Mozambique News Agency (AIM), the amendments reflect lessons learned from the suspension of the Mozambique LNG project, following TotalEnergies' declaration of force majeure in 2021 due to deteriorating security conditions in Cabo Delgado.
Article 72 of the new legislation stipulates that if a force majeure situation remains unresolved for one year, the Government and the concessionaire must meet to assess the future of the contract and identify measures to minimise the impact of the suspension.
By mutual agreement, the parties may review, amend or terminate the contract, subject to legal provisions excluding financial liabilities for the State arising from the force majeure event.
The legislative revision comes amid disagreements between the Mozambican Government and TotalEnergies over costs accumulated during the suspension of the liquefied natural gas project, valued at approximately $20 billion.
In October 2025, the French multinational informed the Government that additional expenses linked to the suspension had reached $4.5 billion. The company also requested approval of an updated budget and a ten-year extension of the project's development and production period.
The Government disputed the amounts submitted, prompting an independent audit to assess the financial documentation provided by the concessionaire.
According to reports published by international media outlets, the audit identified a difference of approximately $2 billion between the amount initially claimed by TotalEnergies and the documented expenses.
TotalEnergies lifted its force majeure declaration in November 2025 and announced the full resumption of onshore and offshore activities in January 2026, following a meeting between the company's Chief Executive Officer, Patrick Pouyanné, and Mozambican President Daniel Chapo in Afungi, Cabo Delgado Province.
Despite the resumption of operations, disagreements remain over additional costs and contractual conditions associated with the suspension period.
The new legislation seeks to prevent similar situations in the future by strengthening cost-control mechanisms and protecting the State's financial interests. However, its adoption does not mean that the new provisions automatically apply retrospectively to expenses previously claimed by TotalEnergies.
According to sources cited by AIM, the legislative review also considered experiences from other African countries through comparative studies conducted during the drafting process.
Law No. 8/2026 repeals the previous Law No. 21/2014, of 18 August, and Law No. 16/2022, of 19 December, establishing a new legal framework for petroleum activities in Mozambique.
