Zandamela calls for efficient continental payment system - AIM report
File photo: TotalEnergies
Various media sources have recently reported that multinational TotalEnergies is imposing conditions on its return to operations in Cabo Delgado, which it abandoned in April, 2021, due to insurgent attacks.
Political analysts point out that TotalEnergies’ conditions for the resumption of its gas project in Cabo Delgado, namely the creation of an exclusive protection force, were to be expected. But they warn that the incorporation of the force’s budget into the company’s recoverable costs will reduce revenues and benefits to communities.
The Centre for Public Integrity (CIP) had already warned of the possibility of oil companies trying to renegotiate their projects in Cabo Delgado because of insecurity there, and researcher Gift Essinalo says that this is a very sensitive issue, because Mozambicans expect Total to return to Palma, “in line with government projections regarding the revenues which could result from its gas project”.
Essinalo says he does not understand why the budget for the force should be incorporated into the company’s recoverable costs, because it will be made up of military units already operating in Cabo Delgado.
Meanwhile, researcher João Feijó says he has doubts that TotalEnergies will restart in March now, because the conditions required by the company regarding security there are not yet present.
Feijó calls reports that Total intends to incorporate the budget of the exclusive force into its recoverable costs, “realistic”. “Total is trying to take advantage in the negotiation process with the government, since extractive industry companies are accustomed to operating in contexts of great insecurity”.
For his part, economist João Mosca says that Total intends to create an exclusive protection force because it has no confidence in the Mozambican army and in the international forces operating in Cabo Delgado.
Mosca said that the incorporation of this force’s budget into Total’s recoverable costs would limit the resources of the envisaged Sovereign Wealth Fund, though he doubts whether such a fund will ever be constituted.
“We’ve been talking about this for more than seven years, without result, so far,” Mosca concluded.
According to some media reports, the CEO of TotalEnergies is scheduled to visit Mozambique soon.
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