Mozambique: ‘Force majeure’ remains until state restores security – Total

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Mozambique: ‘Force majeure’ remains until state restores security – Total

6:28 CAT | 26 Apr 2021

File photo: Lusa

The suspension of work arising from the “Declaration of Force Majeure” on Total’s LNG project in Mozambique will remain in force until the Government has restored security in the province in a verifiable and sustainable manner.

“The ‘force majeure’ will remain in force until the Government of Mozambique has restored security and stability in Cabo Delgado province in a verifiable and sustainable manner,” Total spokeswoman Anastasia Zhivulina said when asked by Lusa about how long the suspension of work is expected to last.

“It is still too early to provide an updated project schedule, but there will be a consequence,” she added, referring to the delay prompted by the withdrawal of workers following the attacks on Palma on March 24.

At issue is the declaration of “force majeure” for the withdrawal of all staff who were working on the natural gas exploration project led by Total in the Afungi peninsula, in northern Mozambique, on which great hopes are pinned for funding the country’s economic development.

The oil company had already told Lusa this morning that “in the current environment, Total cannot continue to operate in Cabo Delgado province in a safe and efficient manner, so all project staff have been withdrawn from the site and will not return until conditions allow it.”

The company “remains committed to Mozambique and to the development of the Area 1 project when conditions allow, and will continue to monitor developments in the situation with great attention, in close contact with the authorities,” said the company spokeswoman, when asked whether the declaration of “force majeure” implies the suspension or cancellation of the project.

Anastasia Zhivulina noted that “the ‘force majeure’ was declared because Total is unable to meet its obligations as a result of the severe deterioration of the security situation in Cabo Delgado, a matter that is completely out of Total’s control.”

Valued at €20 billion, it is the largest ongoing private investment in Africa.

A week after the 24 March attack on the district headquarters of Palma, the oil company withdrew all staff and abandoned indefinitely the gas project site on the Afungi peninsula, six kilometres south of the town.

Source: Lusa