By Borges
Nhamirre, MAPUTO Mozambique
French oil giant Total SE is evacuating most of the remaining employees from its liquefied natural gas project in northern Mozambique as insurgents attacked a town nearby, throwing Africa’s biggest private investment into disarray.
The fresh violence that follows attacks at the turn of the year
suggests Mozambique’s armed forces are struggling to regain control of the
region surrounding the $20 billion project. Total, which bought a 26.5% stake
in the LNG development for $3.9 billion in 2019, has said it wants security to
be restored in the area before resuming onshore work with the aim of starting
gas shipments in 2024.
Total has decided to reduce the workforce on the Afungi site to
a minimum, the company based near Paris said in a statement Saturday. The resumption
of work that was contemplated at the start of the week will also be suspended,
it said.
The energy giant said it “trusts” the government, whose security
forces are “currently working” to take back the control of the area. There were
no casualties among employees at the project, Total said.
The pullout comes as militants attacked a security convoy
attempting to rescue more than 180 people who’d been under siege in a hotel
near the project site, according to three people familiar with the matter.
More than a dozen vehicles were ambushed late Friday during an
operation to evacuate people from the Amarula Palma Hotel, and only seven
vehicles managed to escape, two of the people said. While about 100 fled to the
beach, many are feared dead, according to one person. The militants, who’ve
previously aligned with the Islamic State, were still active in the town of
Palma on Saturday morning, they said.
The latest attack began on March 24, the same day Total
announced it would resume onshore works at its project, after fighting in late
December prompted the company to evacuate staff.
The ongoing raid in Palma, less than 8 kilometres (5 miles) from
Total’s camp and where a number of subcontractor companies are based, could be
a watershed moment in the insurgency that threatens to dampen further foreign
investment in the region. The rebellion that started in 2017 has left more than
2,600 people dead and caused about 700,000 more to flee their homes.
Human Rights Watch said there were bodies on the streets in Palma,
with residents fleeing after the assailants fired indiscriminately.
The suspected jihadist attack on Palma will
be a seminal moment in Mozambique’ immediate future. The incursion will have an
impact on LNG investment & could potentially be the catalyst for greater
foreign intervention in this insurgency which is out of control of state forces
Omar Saranga, the Ministry of Defence spokesman, declined to
comment by phone, saying the government would issue a statement.
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