/Reuters Agency
ExxonMobil’s Chief Executive, Darren Woods, requested guarantees from Mozambique’s President, Daniel Chapo, regarding the security of a proposed $30 billion gas terminal in the country, before making a decision to approve the project, the Financial Times reported.
According to the report, Woods expressed concern about the dangers posed by a jihadist insurgency in the northeastern Cabo Delgado region of Mozambique, where Exxon plans to build Africa’s largest liquefied natural gas (LNG) facility, citing sources familiar with the talks.
Militants linked to the Islamic State began an insurgency in 2017 in the gas-rich northern province of Cabo Delgado, killing thousands of civilians, destroying livelihoods, and internally displacing hundreds of thousands of people, according to humanitarian agencies. The insurgency has affected multi-billion dollar energy projects.
According to the Financial Times, Woods and Chapo also discussed TotalEnergies’ plans to resume work on a nearby LNG facility being developed by the French oil company and to lift the force majeure clause.
TotalEnergies halted work on the project and declared force majeure in 2021 after insurgents attacked the northern town of Palma, a logistics hub near the site.
“We firmly believe that ExxonMobil’s project, if implemented, will make a great difference in Mozambique’s economy and, as a consequence, in the lives of Mozambicans,” Chapo told the FT in a statement sent by email.
An Exxon spokesperson told the FT that the company is working closely with Total, the Mozambican government, and its partners on the LNG project to ensure the proper conditions are met to allow for a final investment decision on the development.
