AfrOil: Total declares force majeure on Mozambique LNG

France’s Total has issued a declaration of force majeure on the Mozambique LNG project, citing unfavourable security conditions in Cabo Delgado, Mozambique’s northernmost province.

In a statement published earlier this week, the company confirmed that it had withdrawn all project personnel from the construction site where it is building an onshore complex and LNG plant. It did not say when it might resume work, but did not say it was withdrawing from the project; instead, it expressed “solidarity with the government and people of Mozambique” and said it hoped Maputo and its partners would be able to restore stability and security in Cabo Delgado.

Total declared force majeure shortly after Bloomberg and other news agencies reported that the company had terminated agreements with some of its contractors for the Mozambique LNG project. Together, these moves appear to signal that the $20bn scheme will be put on hold for at least a year.