The African Energy Chamber on Monday expressed “disappointment” with oil company Total’s decision to declare ‘force majeure’ at its gas exploration project in Mozambique to suspend operations until safety is answered.
“We are disappointed with Total’s recent decision to declare force majeure at its LNG project in Mozambique; we believe the declaration of force majeure could have been avoided and comes prematurely,” reads a note sent to Lusa.
The consultancy, which acts as a promoter of energy investments in Africa, says the parties involved should “have a better and more open conversation to find a practical and pragmatic common sense solution to cease the force majeure event and resume the project, for the benefit not only of Total, but also international and local companies, and especially for the people of Mozambique.”
Acknowledging that Total’s declaration is based on “a legal instrument at its disposal to achieve its objectives and commitments with its creditors and the government,” CEA adds that the oil company “is not only an international company, it is also an African company, as it is one of its most prominent investors and employers.”
Mozambique may have some major security problems at the moment, but it is not among the main countries most affected by terrorism
For CEA president NJ Ayuk, quoted in the statement, “Mozambique remains one of the most attractive options for gas production in the world due to its carbon neutrality, representing a viable solution to climate change.”
In the note, CEA points out that “Mozambique may have some major security issues at the moment,” but, it adds, “it is not among the top countries most affected by terrorism, according to the Global Terrorism Index 2020.”
The Chamber lists Nigeria, Pakistan, Iraq, India and Libya, “where Total continues to operate” and stresses that it expects “Total to take the same stance in Mozambique as it has done in these countries most affected by terrorism and, together with the government and other parties involved, find a solution to safely continue its LNG Project.”
The statement by the council comes on the same day that French oil company Total declared ‘force majeure’ for the withdrawal of all staff working on the natural gas exploration project in the Afungi peninsula in northern Mozambique, on which it has high hopes for funding the country’s economic development.
The oil company had already stated this morning to Lusa that “in the current environment, Total cannot continue to operate in Cabo Delgado province in a safe and efficient way, so all the project’s staff has been withdrawn from the site and will not return until conditions allow it.
The company “remains committed to Mozambique and to the development of the Area 1 project when conditions permit, and will continue to follow the evolution of the situation with great attention, in close contact with the authorities,” said company spokeswoman Anastasia Zhivulina, when asked whether the declaration of “force majeure” implies the suspension or cancellation of the project.
Anastasia Zhivulina noted that “the ‘force majeure’ was 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 beyond Total’s control.”
Valued at $25 billion, this is the largest private investment underway in Africa.
