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Mozambique: a subcontractor prepares to take over Total’s gas project

The Italian subcontractor Saipem, in charge of the development of the gas project in northern Mozambique for TotalEnergies, expects a possible resumption of operations as early as July despite the jihadist violence that has hit the region.

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Saipem, an Italian subcontractor of TotalEnergies, has announced that it is preparing to resume work on a huge gas project in the Cabo Delgado province in northern Mozambique. Operations had been halted in 2021 following a large-scale jihadist attack. TotalEnergies has been cautious in recent months about the possibility of restarting the €16.5 billion liquefied natural gas (LNG) project. Cabo Delgado province has been hit by jihadist violence, which has already caused more than 4,600 deaths and displaced one million people.

Safety conditions seem to be improving

However, Saipem says that following discussions with TotalEnergies, it expects operations to resume as early as July. The subcontractor is following TotalEnergies’ guidance on the recovery plan, saying that safety has improved and that it will be ready as soon as conditions are right to restart. Last month, Patrick Pouyanne, CEO of TotalEnergies, visited the region and met with the Mozambican president. He said he was waiting for the report by writer and former NGO leader Jean-Christophe Rufin to assess the humanitarian situation in the region before making a decision.

A vital project for Mozambique

Mozambique has high hopes for the natural gas deposits – the largest south of the Sahara – discovered in 2010 in the north of the country. However, attacks by armed groups linked to the Islamic State group have cast doubt on the viability of the project. The deployment in 2021 of Rwandan and neighboring forces helped the army regain control of large areas, but sporadic attacks continue.

The gradual resumption of the project should therefore enable Mozambique to revive its economy and give hope to the local population. TotalEnergies, for its part, must guarantee the safety of its employees and successfully complete a project that is crucial to the African country. To be continued.

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