Image: CBN
TotalEnergies is currently reviewing the resumption of activities at its $20 billion Liquified Natural Gas (LNG) project in Mozambique after ongoing operational delays due to the rising insurgency in the Northern region. The announcement was made by the President of the African Development Bank (AfDB), Akinwumi Adesina, last week, where he emphasized that the prolonged interruption, although delaying the project by one year, is not anticipated to impact its long-term viability.
Having committed $400 million in guarantees and direct lending to the project, the AfDB is keen to see the return of TotalEnergies to the country and the resumption of activities at one of Africa’s most lucrative development projects.
The possible resumption comes after African military forces were deployed by the Southern African Development Community to stabilize the region. After TotalEnergies declared a force majeure in April 2021, having already pulled their staff out of the Cabo Delgado area in January 2021 due to security threats imposed by the insurgency, the government, in collaboration with the international community, has been working hard to reestablish security at the country’s developing LNG projects.
Recently, the Rwandan army successfully recaptured the Mozambican port city of Mocimboa Da Praia, leading to returning optimism regarding regional stability and the return of international oil companies.
“The return of security in that place will give assurances to Total and others to return. In one year to 18 months, I expect it to be stabilized enough to get back on track,” stated Adesina.
Meanwhile, emphasizing its commitment to the country in the face of security challenges, TotalEnergies has announced the appointment of Maxime Rabilloud as the new country manager for Mozambique. Rabilloud replaces Ronan Bescond in the role and is expected to use his wealth of experience in both the company and complex projects to drive the projects success.
