Page 5 - GLNG Week 14 2021

GLNG COMMENTARY GLNG

Hundreds of thousands
of people are estimated
to have been displaced
by the fighting.
destruction in Palma and nearby areas, saying part of the $20bn project cost and can still walk
that Maputo had never been in doubt about its away. Even if it returns, it will demand a much
ability to ensure the region’s security. “At no time more favourable deal with Mozambique,” he
was its integrity at stake,” he declared. wrote.

No clear outcome High stakes and big money
Even so, it appears that the situation is still very The government of Mozambique has an incen-
much in flux. tive to try to meet such demands.
Total has reportedly left its construction site After all, Total is just one of three major
entirely in the hands of FDS troops and is now international oil companies (IOCs) looking
concentrating on completing the evacuation to develop the country’s offshore gas reserves.
of its workforce. It is providing some support Maputo is eager to see Italy’s Eni and US-based
to the thousands of refugees who have tried to ExxonMobil proceed with their own Coral
take shelter in or near its facilities, in the form of South LNG and Rovuma LNG projects. If all
food, emergency transportation and evacuation three projects move forward, they will bring at The Mozambican
services, but it is also keeping mum about when, least $50bn worth of direct investments into the
whether or how it might resume work. country, while also creating new streams of jobs government will
According to Joseph Hanlon, a senior lecturer and budget revenue. have to work
at the Open University and a recognised expert Even so, the ability of FADM and FDS to
on Mozambique, the French major is not likely deliver safety and security is far from assured. hard to overcome
to resume operations any time soon. Officials As such, the Mozambican government will have
in Maputo will need time to follow up on offers to work hard to overcome perceptions that it is perceptions that
of assistance and military training from foreign not prepared to restore order in Cabo Delgado.
partners such as the US and Portugal, he noted. It may have to work harder for Total and Exx- it is not prepared
“Will Total return? Not in the short term. onMobil than for Eni, though, since the latter to restore order in
It will take perhaps two years for US, Portu- company intends to install both processing
guese and other trainers to create a functioning and production facilities offshore, rather than Cabo Delgado.
army,” Hanlon wrote in an opinion piece for onshore. As Ian Simm, principal advisor at the
his Mozambique News Reports and clippings IGM Energy consultancy, told NewsBase: “The
newsletter, attack raises serious medium-term concerns
He also speculated that the company might about the development of Mozambique LNG,
very well decide to drop the Mozambique LNG given Maputo’s apparent inability to ensure
project if local authorities cannot guarantee security. This will also apply to the Rovuma
safety, security and improved conditions in LNG project, though the use of a floating LNG
the areas where it has been working. “Total has facility means that Coral South LNG may be
other interests in Africa; it has only spent a small largely unaffected.”™

Week 14 09•April•2021 www. NEWSBASE .com P5