Galp points to lasting peace as condition for investment in Mozambique

The development that Mozambique expects from investment in gas projects in Cabo Delgado province are entirely dependent on an environment where sustainable and lasting peace reigns, the CEO of Galp said Tuesday in Maputo.

According to Andy Brown, in the first instance this condition will help "the people, who need security and education," and peace is always seen as necessary because it will attract investments in "billions of dollars in the gas developments," and consequently more jobs for the local communities.

The official was speaking after signing memoranda with the non-governmental organization Helpo and the Makobo platform, which stipulate that the Portuguese oil company will continue to support the two entities in humanitarian projects in that province in northern Mozambique, with emphasis on support for education projects and the fight against malnutrition among minors.

Cabo Delgado province has been facing an armed insurgency since 2017, and peace is key to the region's development.

"If we have [peace], we can continue to invest a lot of money, which will promote employment and benefits for Mozambique," he stressed.

The amount of support to the two entities was not announced, but according to data advanced by the company's president, the oil company has provided close to one million euros in the last three years for humanitarian projects in Cabo Delgado.

Cabo Delgado province is rich in natural gas, but has been terrorized for four years by armed rebels, with some attacks claimed by the extremist group Islamic State.

The conflict has caused more than 3,100 deaths, according to the ACLED conflict registration project, and more than 817,000 displaced people, according to the Mozambican authorities.

Galp (Portugal), Empresa Nacional de Hidrocarbonetos (Mozambique) and KOGAS (South Korea) each have a 10% stake in the Cabo Delgado gas project.

The consortium is led by Mozambique Rovuma Venture (MRV), a joint venture of Exxon Mobil, Eni and CNPC (China) that holds a 70% participating interest in the concession contract.

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