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    Total declares force majeure at Mozambique LNG

Summary

Insurgents launched a major attack on the nearby town of Palma just hours after Total said it was resuming construction at the project.

by: Joseph Murphy

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Total declares force majeure at Mozambique LNG

France's Total has declared force majeure on its Mozambique LNG project following further attacks in gas-rich north Mozambique by Islamist insurgents.

"Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, Total confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site," the company said on April 26. "This situation leads Total, as operator of Mozambique LNG project, to declare force majeure."

Total expressed hope that government forces would be able to restore security and stability in the region.

An armed Islamist group known as Al-Shabab launched a major attack on the town of Palma in the Cabo Delgado region on March 24, just hours after Total announced that it was resuming construction on the $20bn Mozambique LNG project after the government beefed up security at the site. Palma was finally retaken on April 5, but the fighting left dozens of civilians dead and thousands more displaced. The Afungi site is only 12 km from the besieged town.

Mozambique LNG aims to produce up to 13.1mn metric tons/yr of LNG from the Golfinho and Atum gas fields in Mozambique's Offshore Area 1 concession. It is scheduled to produce its first gas in 2024.