The Mozambican Government and the French oil company Total will jointly decide on the actions to be taken to eliminate the cause that determined the declaration of force majeure in the gas project in the north of the country.
“In cases in which a situation of Force Majeure persists for more than fifteen consecutive days, the parties will meet immediately to analyze the situation and agree on the measures to be adopted to eliminate the cause of Force Majeure for the resumption, in accordance with the provisions of this contract, of the fulfillment of obligations under it,” the exploration concession contract reads.
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, and on which are based great hopes for financing the country’s economic development.
The document, to which Lusa had partial access, explains that the concept of force majeure “means any cause or event beyond the reasonable control of the Party claiming to have been affected by this event and not attributable to that Party, and which is at the origin of non-performance or delay in non-performance.
The contract consulted by Lusa also states that “the term Force Majeure shall cover natural phenomena or calamities including, namely, epidemics, earthquakes, typhoons, lightning, floods, fires, explosions, wars declared or undeclared, cross-border hostilities, blockades, insurrections, public order disturbances, labor disturbances, strikes, quarantines and unlawful acts of the Government.
Upon the elimination or cessation of the Force Majeure event, [Total] will promptly notify the other parties, taking all reasonable steps for the resumption of the performance of its obligations
Among the obligations that Total will have to fulfill in the face of this declaration of inability to continue work on the construction of the natural gas liquefaction plant near Palma is the notification of all parties involved, and it must also “take all reasonable and legal measures to eliminate the cause of Force Majeure, and nothing contained herein shall cause the concessionaire to be required, with observance of applicable law, to settle any labor disputes other than on terms satisfactory to the concessionaire.”
On the other hand, it adds in the obligations portion, “upon the elimination or cessation of the Force Majeure event, [Total] will promptly notify the other parties, taking all reasonable steps for the resumption of performance of its obligations under this contract as soon as practicable after the elimination or cessation of the Force Majeure.”
Oil company Total told Lusa today that the gas project in Mozambique has not been cancelled, but suspended until safety conditions allow work to resume on the Afungi peninsula.
“In the current environment, Total cannot continue to operate in Cabo Delgado province in a safe and efficient manner, so all project personnel have been withdrawn from the site and will not return until conditions allow,” a source from the French oil company said in a response to Lusa.
“Total remains committed to Mozambique and to the development of the Area 1 project when conditions allow, and will continue to follow the evolution of 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.
Valued at 25 billion dollars, this is the largest private investment underway in Africa
Anastasia Zhivulina said that “force majeure has been declared because Total is unable to fulfill 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 $25 billion, this is the largest ongoing private investment in Africa.
A week after the March 24 attack on the district headquarters of Palma, the oil company withdrew all personnel and abandoned indefinitely the gas project site on the Afungi peninsula, six kilometers south of the town
