New Presidency in Mozambique May Continue with Policies Governing Multinational Energy Companies

(3 Minutes Read)

Chapo, 48, is expected to seek to gain acceptance quickly after the post-election protests. Protests have disrupted foreign firms operating in Mozambique including Syrah Resources and Gemfields Group.

Mozambique may not review policies governing energy projects of TotalEnergies, ExxonMobil, and others to revolutionise its tiny economy and put shaky public finances on a surer footing.

Referring to TotalEnergies’ USD 20 billion project in the restive Cabo Delgado province, which has been on hold since 2021 when an Islamist insurgency threatened the site, Chapo said the government was not in a position to review terms because the French company was not yet producing gas. He said that the company is still making investments and there is no scope for reviewing contracts since it has never come into operation yet.

 Chapo, 48, is expected to seek to gain acceptance quickly after the post-election protests. Protests have disrupted foreign firms operating in Mozambique including Syrah Resources and Gemfields Group.

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Glencore reportedly approached Rio Tinto late last year about combining the two big copper producers. TotalEnergies and ExxonMobil are looking to resume construction of their LNG projects soon as the security situation in Cabo Delgado has improved despite sporadic insurgent attacks continuing.