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The French Multinational Total Cancels Contracts and Suspends Operations in the Construction of the Gas Plant Project in Mozambique Due to Attacks That Occurred 10 km from the Project Site in March
After a jihadist attack, the French multinational oil company Total announced on Tuesday (20) that it has suspended its contracts with two companies related to the gas plant project in Mozambique. In early April, Total suspended its operations in Cabo Delgado, Northern Mozambique, evacuating all its employees days after jihadist groups linked to the Islamic State invaded Palma, a neighboring city, on March 24.
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The multinational had already evacuated workers in January, suspending construction on the gas plant project worth US$ 20 billion after a series of attacks near the exploration site.
According to a statement made on Tuesday (20) by the Confederation of Economic Associations of Mozambique (CTA), Total has indefinitely canceled contracts with companies that were indirectly involved in the gas plant project. Among these companies are a Portuguese public works firm and an Italian construction company.
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Words from the CTA
During a meeting with the French ambassador and a representative from Total in Maputo, Mozambique, the president of the CTA, Agostinho Vuma, stated that approximately 410 companies and 56,000 employees have been negatively affected by the jihadist attacks.
Medium and small companies have already lost US$ 90 million since the attack in Palma. According to Vuma, the CTA is still evaluating how many contracts had been canceled and whether subcontractors have already been paid.
According to the president of the CTA, Total had confirmed that the gas plant project would resume operations when it was safe, and that the company had already paid its invoices; however, a Total spokesperson declined to comment. Rich in gas, Cabo Delgado in Mozambique has been the target of aggression by a jihadist insurgency since 2017.
About the Jihadist Attacks on Total
The attacks killed around 2,600 people and displaced nearly 700,000. This raised doubts, as they began to question whether it is entirely feasible to build a unique billion-dollar investment in Mozambique.
The Palma attack in March occurred within a 10-kilometer radius of the gas plant project, even with the Mozambique government establishing a 25-kilometer perimeter around the site.
About Total
Total, as one of the leaders in Oil worldwide, is a French multinational that operates in Oil and Gas. Total is a professional and specialized company across the entire oil and gas chain. It explores and produces everything from crude oil and natural gas to energy generation.
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