Total declares Force Majeure and pulls all its people from Afungi gas plant

The French energy giant Total has declared “Force Majeure” on its suspended, vast Mozambique liquid natural gas project, meaning it’s unlikely to return in a hurry. A summit of regional leaders in Maputo, set for Thursday, could help determine if, and when, the much-delayed project eventually takes off.

Total also announced on Monday that it was withdrawing all personnel from the Afungi site, where it was building a plant to process the gas from the vast offshore Rovuma gasfields. Total suspended the project in March, after Islamic State-linked insurgents overran the nearby town of Palma, killing dozens of Mozambicans as well as several contractors working on the Afungi site.

Since then, Total has begun “terminating” contracts to companies sub-contracted to it in the project. Declaring force majeure means it believes it cannot be held liable for any losses which contracted parties might sustain as a result of the termination – or suspension – of the project, as this is beyond Total’s control.

“Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, Total confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site,” the company said in a statement on Monday from its Paris headquarters.

“This situation leads Total, as operator of Mozambique LNG project, to declare force majeure.

“Total expresses 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,” the statement concluded, hinting at a return by Total if Mozambique can restore security to the area.

The major insurgent attack on Palma also jolted the Southern African Development Community (SADC) into action. It called a summit of its “double troika” in Maputo on 8 April to determine what SADC could do to help Mozambique defeat the insurgents.

The double troika comprises both the troika of SADC itself and that of its security organ. The Maputo summit decided to send a technical mission to Mozambique to assess how SADC could contribute. It was tasked to report on its assessment to a ministerial meeting of the SADC security organ troika on Wednesday this week, 28 April, to be followed by a summit the next day, of the leaders of the SADC security organ troika – Presidents Ramaphosa, Mokgweetsi Masisi of Botswana and Emmerson Mnangagwa of Zimbabwe.

The technical mission, comprising mainly senior security sector officials of SADC’s member countries, has been in Mozambique since April 15 but sources say it has not been given the necessary cooperation by the Mozambican government to do its job.

Officials told Daily Maverick there had been a “fracas” between the Mozambique government and the technical team soon after it arrived because the team wanted to go north from Maputo to Cabo Delgado for four days to assess the security situation first hand. But the Mozambique government would only allow the team to go to Cabo Delgado for one day, these sources said.

However, other security sources say the team has been prevented from visiting Cabo Delgado at all, raising serious questions about what it will tell the SADC ministers and presidents at the meetings in Maputo this week and also about the Mozambique government’s willingness to accept regional help. DM