Mozambique: Total’s LNG project invests $250M so far in local companies – Lusa

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Mozambique: Total’s LNG project invests $250M so far in local companies – Lusa

9:38 CAT | 26 Feb 2021

Total’s natural gas exploration project in northern Mozambique has so far invested about US$250 million (€205 million) in Mozambican companies, the French oil company said in a statement on Thursday.

The figure is part of a total of US$1 billion (820 million euros) spent with companies registered in Mozambique, on the works of the industrial complex and associated infrastructure in Afungi, Cabo Delgado province.

The overall figure represents an increase of around $50 million from the last update in December 2020.

Investment in what is referred to as “local content” – in the sense that they are acquisitions made within the country – will continue to grow, running the construction phase of the venture that will start exporting liquefied gas in 2024.

“Our focus, in partnership with the Mozambican government, is to increase the competitiveness of local companies in order to maximise opportunities for local participation,” said Thomas Rodriguez, Total’s Local Content manager, quoted in the statement.

According to the oil company, business opportunities for 2021 focus on “the supply of goods and services in the areas of health and safety at work, human resources, construction, maintenance, mechanics, catering, hotels, camp management, transport and electrical and office equipment.

Total also plans to develop capacity building initiatives via a Business Development Programme that, “will be launched soon,” he said.

The development under construction in Afungi, Palma, is the largest private investment in Africa, which faces the threat of armed attacks that have raged in Cabo Delgado province for three years.

In late 2020, attacks moved closer to the construction site perimeter, forcing Total to reduce staff until there is a strengthening of security conditions – a topic that has been addressed with the Mozambican state.

However, despite the threats, the company has maintained the deadline of 2024 for the start of production.