Communication - Presse
Restart of $20B Megaproject in Mozambique Leads Saipem to Reassess Costs
The announcement follows confirmation by TotalEnergies and the Government that the megaproject — suspended for several years due to security constraints in the province of Cabo Delgado — will resume. Saipem, one of the main international contractors involved, is currently working with the French oil company to reassess contractual conditions, taking into account cost escalation and the financial impact of the shutdown period.
Speaking after the presentation of results, the company’s chief executive officer, Alessandro Puliti, explained that “we are currently revisiting orders and subcontracts to reflect escalation and restart costs, but this process will not be completed until the end of the first quarter of this year.” The contractual update is expected to incorporate adjustments related to inflation, logistics, supply chains and the reactivation of yards.
Saipem is an Italian multinational energy engineering and construction company with a strong presence in oil and gas projects across Africa, the Middle East and Latin America. Specialised in integrated engineering, procurement and construction (EPC) solutions, the company stands out in offshore infrastructure, subsea pipelines and LNG liquefaction facilities.
In recent years, the company has strengthened financial discipline and diversification into areas linked to the energy transition, while maintaining a strong dependence on major international hydrocarbon projects. The project — considered strategic for Mozambique’s economy — represents an estimated global investment of $20 billion and is seen as one of the largest energy developments in Africa. Its completion could significantly boost national exports, increase tax revenues and consolidate the country’s position as a future major natural gas producer in international markets.
Meanwhile, Saipem indicated that it maintains positive financial expectations for the current year, anticipating adjusted operating results to rise to around $2.2 billion, compared with $1.7 billion recorded the previous year. The company also expects to conclude, in the second half of the year, its merger process with the Norwegian firm Subsea7, a transaction that could strengthen its technical capacity in the offshore segment.
At the international level, the energy contractor also expressed willingness to return to Venezuela following the partial easing of U.S. sanctions on that country’s energy sector, although it emphasised that it is awaiting formal tender requests from oil companies.
For Mozambique, the restart of the LNG project comes at a crucial moment, in a context of the need for fiscal consolidation, stronger external reserves and stimulation of foreign direct investment. The evolution of costs, operational stability and contractual predictability will be decisive factors in ensuring that the anticipated macroeconomic benefits translate into effective impact on growth, employment and the sustainability of public finances.
