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Total, Mozambique Government Sign Agreement to Improve LNG Project Security

Total E&P Mozambique Area 1, operator of the Mozambique LNG project, has announced that it has signed a new Memorandum of Understanding with the Government of Mozambique regarding the security of Mozambique LNG project activities.

The MoU provides that a Joint Task Force shall ensure the security of Mozambique LNG project activities in Afungi site and across the broader area of operations of the project. Mozambique LNG shall provide logistic support to the Joint Task Force.

According to Total the memorandum demonstrates the project’s commitment to meeting its milestones in a secure manner, while creating local opportunities and bringing meaningful social and economic benefits for the province of Cabo Delgado and the country.

His Excellency the Minister of Mineral Resources and Energy, Ernesto Max Elias Tonela, said: “We are proud to continue working with the Mozambique LNG project to ensure the country benefits from its presence. This Memorandum of Understanding bolsters security measures and endeavors to create a safe operating environment for partners like Total which enables their ongoing investment in Mozambican industry, for small and medium enterprise and for our communities.”

Mozambique’s port of Mocimboa da Praia which is located in the province of Cabo Delgado and which has the potential of disrupting operations in the multi-billion dollar Mozambique LNG project. Mozambique  which took chairmanship of the SADC region this month has been looking for support from its SADC  members to help improve the security situation with its forces unable to keep helm of the northern port town since attacks started in 2017.

The LNG projects in Area 1 and Area 4 are Mozambique’s largest infrastructure projects and have already received billion of dollars in financing from various Export Credit Agencies and financial institutions

Ronan Bescond, Country Chair of Total in Mozambique, said: “In recognition of the benefits the Mozambique LNG project will bring to local communities, the country, and all parties involved in the project, Total and the Government of Mozambique are committed to enable steady progress towards a successful delivery of the project. In view of the security situation in the Province of Cabo Delgado, our priority is to ensure the security of our workforce, many of whom residing in neighboring communities, and of the project operations. On behalf of our Area 1 partners, we appreciate the support provided by the Government of Mozambique for the secure delivery of the project.

Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of Total, 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%).

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