( 4 minutes read)
· The French energy firm Total announced it has stalled all operations on its US$20 billion investment in a liquefied natural gas project in northern Mozambique due to security reasons
· Total has invoked force majeure closure for the suspension of its operations of the gas project
· The plant is billed to change the landscape of the struggling Mozambique’s economy
The French energy firm Total announced it has stalled all operations on its US$20 billion investment in a liquefied natural gas project in northern Mozambique due to security reasons. Extremists are carrying out insurgency operations in the area. It is significant to note that Total has invoked force majeure closure for the suspension of its operations of the gas project. The plant is billed to change the landscape of the struggling Mozambique’s economy.
Www, trendsnafrica.com had earlier reported about the rebels attacking Palma, just a few kilometers from Total’s gas project. During the assault, over 80 persons died and the disturbances lasted for five days or so. There were widespread arson and looting directed banks and public properties. Several people fled the Palma region.
As result of the uncertainty and sporadic fights, Total had to suspend work on the gas project in January. On March 24, the France based multinational said that it would commence operations since the situation had improved. But that optimism did not last long. Hours later, the rebels attacked Palma, forcing Total to abruptly close the project again. Total withdrew its entire staff from the project site on April 2.
Analysts maintain that with the temporary interruption of its operations, Total will not be able to fulfill its contractual obligations. This would lead to suspension or rescinding more contracts with other suppliers or goods and/or services. Total did not provide any likely date for resumption of its operations.
Thousands of people are stuck at Quitunda, a village built by Total just outside the fence of the project. When the rebels attacked Palma in late March, hundreds of contract workers and residents flocked to Quitunda in the hope of being protected from the violence and being evacuated to safety.
