French multinational integrated oil and gas company Total said on Monday considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, it confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site.
“This situation leads Total, as operator of Mozambique LNG project, to declare force majeure,” the company said in a statement.
Total expressed its solidarity with the government and people of Mozambique and wishes that the actions carried out by the government of Mozambique and its regional and international partners will enable the restoration of security and stability in Cabo Delgado province in a sustained manner.
Total had already suspended plans to resume construction work at Mozambique LNG and cut staffing levels to the minimum in late March after attacks on the nearby town of Palma in the north of the country, S&P Global Platts said in a report.
By declaring force majeure, Total will likely be freed from certain obligations to its contractor partners. Total had hoped to produce the first LNG from the project in 2024, however, with the force majeure declaration, this timeline could be in doubt.
Dozens of people were killed in the attacks by Islamist militants during the offensive against Palma in late March close to the site of the LNG project on the Afungi peninsula.
Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of Total SE, operates Mozambique LNG with a 26.5% participating interest alongside ENH Rovuma Área Um, S.A. (15%), Mitsui E&P Mozambique Area1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).