Mozambique: Onshore gas projects waiting for ‘right moment’ to restart

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Mozambique: Onshore gas projects waiting for ‘right moment’ to restart

3:07 CAT | 15 Nov 2021

Mozambique President Filipe Jacinto Nyusi speaks during a christening ceremony for the Coral-Sul floating facility at the shipyard of Samsung Heavy Industries Co. in the port city of Geoje off South Korea's southern coast on Nov. 15, 2021. The offshore floating facility, 432 meters long, 66 meters wide and 39 meters high, is capable of producing liquefied natural gas (LNG) off the coast of Mozambique.[Photo: Lusa]

Mozambique’s president, Filipe Nyusi, said in South Korea on Monday that the government was studying “the right times” to resume work on the natural gas project in Palma, Cabo Delgado, suspended in March due to armed attacks.

“We will continue to maintain contacts with the concessionaires so that together we can assess the right times for the resumption of activities in Area 1. Our primary concern is the protection of human lives in the communities and investments,” he said, but without making any commitments regarding dates.

According to Nyusi, the return of French oil company TotalEnergies to the Afungi worksite is a given. It is a matter of time, a return of investment, as a result of the military offensive with foreign support that has eliminated the rebel threat in Cabo Delgado since July.

Nyusi was speaking in South Korea during the ceremony to launch the floating platform Coral Sul, the first to explore the offshore reserves in the north of the country, classified among the largest gas discoveries in the world.

The platform is led by oil company Eni and belongs to Area 4, a different concession from the one it is investing in on land.

If the investment in the Palma district has suffered from insurgency, in the Coral Sul project, about 50 kilometres offshore, insecurity “has not had any material impact”, Eni said today in a statement sent to Lusa.

In any case, insecurity always damages the general investment climate, Nyusi acknowledged today.

Before the audience at the Geoje shipyard, South Korea, and in front of all the partners of Area 4, he promised to “do everything to remove the last obstacle, until we completely restore security and tranquillity,” in an allusion to the armed insurgency in Cabo Delgado.

Saying he was aware that peace and security” are fundamental for investment, he said that “there are notable advances in the actions against terrorism in the province.

The growing security “encourages investors in Area 1, led by Totalenergies, to consider resuming investments that were interrupted due to security concerns.

Cabo Delgado province is rich in natural gas but has been terrorised since 2017 by armed rebels, with some attacks claimed by the extremist group Islamic State.

The conflict has led to more than 3,100 deaths, according to the ACLED conflict registration project, and more than 817,000 displaced people, according to Mozambican authorities.

Since July, an offensive by government troops with support from Rwanda, which was later joined by the Southern African Development Community (SADC), allowed for an increase in security, recovering several areas where there was rebel presence, including the town of Mocímboa da Praia, which had been occupied since August 2020.

FLNG 플랜트 ‘코랄 술(Coral Sul)호’의
출항·명명식을 갖게 되었습니다.
FLNG는 해상에서 LNG를 생산,
액화·저장, 출하할 수 있는
해상이동식 복합 기능 플랜트입니다.
모잠비크와 우리나라를 비롯해
이탈리아, 미국, 중국, 일본,
프랑스, 포르투갈 등 여러 나라
기업들이 긴밀히 협업해온 성과입니다. pic.twitter.com/pvt5ow8cwM

— 문재인 (@moonriver365) November 15, 2021