Page 4 - AfrOil Week 17 2021

AfrOil COMMENTARY AfrOil

(Image: Mozambique LNG)
(Image: Mozambique LNG)

Mozambique LNG on hold

Total issues declaration of force majeure, citing deteriorating security conditions in Cabo Delgado

FRANCE’S Total has issued a declaration of 12.88mn tonnes per year (tpy). A spokesman
force majeure on the Mozambique LNG pro- for the French major informed Upstream earlier
WHAT: ject, citing deteriorating security conditions in this week, though, that the declaration of force
The French major has Cabo Delgado, Mozambique’s northernmost majeure would not be lifted until Mozambican
suspended work at province. In doing so, it signals that its attempts authorities succeeded in restoring “safety and
the site of its onshore to restart work on the project have come to an stability in a verifiable and sustainable manner.”
complex on the Afungi end – at least for now. According to the spokesman, Total took this
Peninsula. In a statement dated April 26, the company step because it has not been able to operate safely
confirmed that it had withdrawn all project or efficiently since late March, when Ahlu Sun-
WHY: personnel from the site on the Afungi Penin- nah Wa-Jamo (ASWJ), an Islamist group with
Total had hoped to re- sula where it is building an onshore complex ties to Islamic State (Daesh), mounted a series
sume work in late March, and natural gas liquefaction plant. It expressed of vicious attacks on Palma and other villages
but has been stymied by
a series of attacks on “solidarity with the government and people of near the construction site. Under these circum-
local communities. Mozambique” and said it hoped that “the actions stances, he said, the company cannot resume
carried out by the government of Mozambique work or allow personnel for the Mozambique
WHAT NEXT: and its regional and international partners will LNG project to remain on the Afungi Peninsula.
Mozambique LNG may enable the restoration of security and stability in
have to postpone the Cabo Delgado Province in a sustained manner.” Contract cancellations
start of production by at Total has not said when it might resume work Total’s spokesman did not comment directly on
least a year. on the LNG plant, which will eventually have his company’s relationships with contractors for
two production trains capable of turning out the Mozambique LNG project.

P4 www. NEWSBASE .com Week 17 28•April•2021