A Malawi court ordered on Thursday that a long-running $480 million row between TotalEnergies and the government must be heard locally despite the French energy company's bid to shift the case abroad.

The case centres on fuel rebates the government alleges are owed by TotalEnergies' Malawi unit under a 2001 supply contract, which amount to $480 million, according to the justice ministry.

The High Court of Malawi's Commercial Division dismissed TotalEnergies' challenge to its jurisdiction to deal with the case and said the dispute must proceed to full trial in Malawi.

It also barred the company from continuing arbitration proceedings initiated outside the country, including in Britain and South Africa.

'Abuse of process'

This was "an abuse of process and contemptuous", the ruling said, warning it risked leading to conflicting judgements and "smacks of forum shopping."

Malawi's Attorney-General Frank Mbeta told AFP: "This ruling preserves the integrity of our justice system. Multinationals should not be allowed to abuse local courts."

The state claims the French company owes $180 million to the Malawi government as fuel rebates and $300 million to local contractor Prima Fuels.