Total Withdraws All Staff From Gas Project In Mozambique After Attack

Cat:

Related stories

Drama as 16, 17-year-olds Now Allowed to Vote In UK Elections

By Abiola Olawale  The government of the United Kingdom announced...

Brazil’s Petrobras Weighs Return to Retail Fuel Market to Reduce Prices

Brazil’s Petrobras will discuss this week tweaking its mid-to-long-term...

Base Handover: France Ends Decades-Long Military Presence in Senegal

By Abiola Olawale France on Thursday officially ended its 65-year...

The French energy company Total on Monday announced it would completely withdraw its employees from a multibillion-dollar liquefied natural gas project in Mozambique in view of the tense security situation.

According to earlier reports, about 1,000 employees are directly affected, but Total did not give a number.

Agostinho Vuma, the president of Mozambique’s business association earlier estimated the total damage to the economy by the looming production stop at around 90 million dollars.

According to his preliminary estimates, about 410 companies involved in the gas production project in Cabo Delgado from suppliers to security services to lodge owners will have to shut down their operations.

Around 56,000 people would become unemployed as a result.

Mozambique’s government confirmed the indefinite halt of the project as well as the cancellation of numerous contracts with supplier companies.

The town of Palma in the north of the south-east African country was attacked by Islamist rebels on March 24. Total is involved in an over-20-billion-dollar liquefied natural gas project in the region.

In view of the circumstances, Total is now using the legal term “force majeure,” which refers to unforeseeable circumstances that prevent a party from fulfilling a contract.

The company hopes that the country’s government and international partners would succeed in restoring security, according to a statement.

If the uncertainty in the region persists, however, further lay-offs are to be expected, it said.

The planned gas extraction was linked to high hopes in Mozambique for a sustainable development boost.

The United Nations World Food Programme (WFP) has already warned of a worsening crisis in the conflict province of Cabo Delgado.

Thousands of people are fleeing due to the recurring violence and almost one million people are currently affected by severe hunger. Some 50,000 people have fled after the attack in Palma.

(dpa/nan)
(dpa/nan)
Hamilton Nwosa is an experienced, and committed communication, business, administrative, data and research specialist . His deep knowledge of the intersection between communication, business, data, and journalism are quite profound. His passion for professional excellence remains the guiding principle of his work, and in the course of his career spanning sectors such as administration, tourism, business management, communication and journalism, Hamilton has won key awards. He is a delightful writer, researcher and data analyst. He loves team-work, problem-solving, organizational management, communication strategy, and enjoys travelling. He can be reached at: hamilton_68@yahoo.com

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
2027: Buhari’s exit Cripples APC in entire North as CPC Loyalists Defect in Large NumbersDrama as 16, 17-year-olds Now Allowed to Vote In UK ElectionsSenate passes $9 billion in spending cuts to public broadcasting, foreign aid requested by TrumpBrazil’s Petrobras Weighs Return to Retail Fuel Market to Reduce PricesBase Handover: France Ends Decades-Long Military Presence in Senegal5 Oil Titans Who Revolutionized the Energy Sector2027: Dele Momodu dumps PDP for Coalition party, ADCBuhari's Honour: Tinubu holds special FEC session as Nigerians Mourn late Hero, Statesman. First Bank Crisis: In High-Stake Intrigues, Otedola Seizes Control with 40% Stake as Oba Otudeko Exits in N324.47bn DealElderstatesman, Emeka Anyaoku, Speaks Again , Urges Nigeria to Adopt a "People’s Democratic Constitution""Nigeria's challenges not about the constitution, but its operators", says ObasanjoNigeria Surpasses OPEC’s 1.5 Million Barrel Oil Quota in June 2025Natasha vs Akpabio: Senate President Heads to Court, Challenges Court Order to Reinstate SenatorOluwo Commends Awujale's Burial, Says Late Monarchs Shouldn't Be "Butchered Like Animals"Alleged N6.9Billion Fraud: Drama as Ex-Governor Fayose Wins in Court
X whatsapp