French energy giant Total SE yesterday confirmed it is suspending work on a massive US$20 billion gas project in northern Mozambique after an Islamist assault on a nearby town last month.
“Considering the evolution of the security situation... Total confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site,” the company said in a statement.
Total added that it was declaring a “force majeure” situation beyond its control, a legal concept meaning it can suspend fulfilling contractual obligations.
Photo: AFP
A March 24 Islamist raid on Palma in Mozambique’s northern Cabo Delgado Province prompted Total to remove remaining staff from the natural gas site.
It had already evacuated some workers and suspended construction in January following a series of Islamist attacks nearby.
Last week, the Confederation of Economic Associations of Mozambique (CTA) said that Total had suspended contracts with a series of businesses indirectly involved in the gas project.
CTA president Agostinho Vuma said at the time that Total had assured that the gas project would resume “once it is safe,” although the energy company itself declined to comment.
Gas-rich Cabo Delgado has been battered by a bloody Islamist insurgency since 2017.
The violence has killed at least 2,600 people and displaced nearly 700,000, raising doubts over the viability of the biggest single investment in Africa even before the latest raid.
Last month’s attack on Palma took place just 10km from the gas project’s nerve center, despite a government commitment to set up a 25km security radius around the site.
Dozens were killed in the assault, provisional government tallies showed.
Hundreds of others, including many foreign workers, were evacuated by air and sea, while thousands of locals walked to nearby districts.
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