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Total SE asked some employees to abandon their Mozambique $ 20 billion (about R 293 billion) liquefied natural gas (LNG) project, as Islamist militants are mounting attacks ever closer to the site.
Fighters linked to the Islamic State raided a city less than 5 kilometers from the construction camp this week of what is Africa’s largest private investment, increasing risks for the planned LNG export terminal on Mozambique’s north coast. While the heavily guarded site has yet to come under attack, militants have made threats that they can.
Total “has temporarily reduced its workforce on site in response to the prevailing environment,” the company said in an emailed response to questions on Friday. The situation is continually being reviewed, he said.
The southern African nation has so far struggled to contain an insurgency in Cabo Delgado province that began in October 2017 and that killed some 2,500 people and caused 570,000 to flee their homes.
Mozambique hopes that LNG projects like Total’s will transform one of the poorest countries in the world and catapult it into a major global fuel exporter.
The coronavirus pandemic has further weighed on the decision to downsize, Total said.
Mozambique’s LNG project, which will begin production in 2024, was the site of the country’s first coronavirus cases in April, prompting the suspension of works until June. A new outbreak was detected in the project last month, Maputo-based news website @Verdade reported.
Total has a 26.5% stake in the project that it bought for $ 3.9 billion in September 2019.
-With the assistance of Borges Nhamire.
