French oil major Total and the Government of Mozambique have signed a security pact in order to support the development of the $20bn Mozambique liquefied natural gas (LNG) project.
The latest move comes amid an insurgency linked to Islamic State, Reuters reported.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Mozambican security forces have been battling militias in the ‘gas-rich’ north of the country. Recent violence in the Cabo Delgado region has claimed many lives.
The news agency quoted Mozambique mineral resources and energy minister Ernesto Elias Tonela as stating: “This bolsters security measures and endeavours to create a safe operating environment for partners like Total, which enables their ongoing investment in Mozambican industry”.
The Mozambique LNG Project is being developed following the discovery of a large natural gas quantity off the coast of northern Mozambique in 2010.
It is operated by Total and comprises a global team of energy developers.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataOther partners in the project include Mitsui, Oil India, ONGC Videsh, Bharat Petroleum, PTT Exploration, as well as Mozambique’s national oil and gas company ENH.
The project involves the development of the Golfinho-Atum gas field located offshore Area 1 Block of the deep-water Rovuma Basin.
The project is estimated to generate approximately $50bn in revenue for the Government of Mozambique over the next 25 years.
It is currently on track to be commissioned by 2024.
Last month, Total secured $14.9bn in financing from several banks for the Mozambique LNG project.
In June 2019, the partners reached a final investment decision (FID) to invest more than $20bn in the LNG project, allowing the initial commercialisation of the project.
