Mozambique Challenges $2B TotalEnergies LNG Cost Overruns as Brent Falls 10%
TTE•Brent crude dropped almost 10% this week to about $92, its biggest weekly fall in two months as markets weigh a 60‐day ceasefire extension. Mozambique is disputing TotalEnergies’ $2 billion LNG cost overrun claim, and French voters prefer a pump price cap over a superprofit tax.
1. Brent Crude Weekly Decline
Brent crude futures plunged nearly 10% this week to around $92 per barrel, marking the largest weekly drop in two months as traders priced in a potential 60-day ceasefire extension in the Middle East and a temporary navigation agreement in the Strait of Hormuz.
2. Mozambique LNG Cost-Overrun Dispute
The government of Mozambique has formally challenged TotalEnergies’ estimate of $2 billion in cost overruns on its Bacalhau LNG project, citing a third-party audit that failed to substantiate the figure and raising uncertainty over remaining investment requirements on the five-year-delayed development.
3. French Fuel Pricing Debate
TotalEnergies’ CEO highlighted that a national poll finds French citizens favor a capped pump price over a superprofit tax, prompting the government to ease its rhetoric on windfall levies and reducing near-term regulatory risk to domestic fuel margins.
