- Mozambique is not looking to review contract terms with energy majors like TotalEnergies and ExxonMobil.
- TotalEnergies and ExxonMobil are looking to resume construction of their LNG projects as soon as the security situation in Cabo Delgado improves
Mozambique is not looking to review contract terms with energy majors like TotalEnergies and ExxonMobil who are planning multibillion-dollar liquefied natural gas projects in the country, its new president Daniel Chapo of the long-ruling Frelimo party said.
Daniel Chapo of the long-ruling Frelimo party took office on Wednesday, following months of opposition protests against his disputed election victory in which civil society groups say more than 300 people have been killed.
The Southern African country’s government is banking on the energy projects by TotalEnergies, ExxonMobil and others to revolutionise its tiny economy and put shaky public finances on a surer footing.
Referring to TotalEnergies’ $20 billion project in the restive Cabo Delgado province, which has been on hold since 2021 when an Islamist insurgency threatened the site, Chapo said the government was not in a position to review terms because the French company was not yet producing gas.
“They are currently making investments, the contracts are new, that’s why for these cases there is no place for reviewing contracts because they haven’t even come into force yet, in terms of operation,” he said.
A tall, imposing figure plucked from relative obscurity as governor of the gas-rich Inhambane province, Chapo, 48, is expected to seek to stamp his authority quickly after the post-election protests, which have disrupted foreign firms operating in Mozambique, including Syrah Resources and Gemfields Group.
Glencore reportedly approached Rio Tinto late last year about combining the two big copper producers.
TotalEnergies and ExxonMobil are looking to resume construction of their LNG projects as soon as the security situation in Cabo Delgado improves despite the continuing sporadic insurgent attacks.
Mozambican authorities will continue fighting the insurgents with the support of Rwandan soldiers and neighbouring countries, Chapo said.