French oil company TotalEnergies' intention to resume natural gas extraction in Mozambique risks coming into conflict with the European Union's (EU) nascent Corporate Sustainability Due Diligence Directive, said an NGO, quoted by the Euronews.

Following the 2021 terrorist attack on the district headquarters of Palma, Cabo Delgado province, oil companies TotalEnergies, ExxonMobil and Eni suspended their operations, withdrawing all staff and abandoned the gas project site on the Afungi peninsula, six kilometers south of the town, for an indefinite period.

However, during the presentation of TotalEnergies' 2023 annual results in February, CEO Patrick Pouyanné stated that the company intended to resume operations on the Afungi peninsula this year.

Meanwhile, Climate Action Network Europe (CAN), a European non-governmental organization that fights for environmental rights in more than 130 countries, said that TotalEnergies' intention to "ignore" the fact that the region is vulnerable to conflict and violence in order to restart its gas projects in Mozambique is "alarming" and referred to the future Corporate Sustainability Due Diligence Directive (CSDDD).

"The law would require the French oil company to assess its operations in a high-risk context, such as Cabo Delgado, and to align itself with human rights obligations and a climate transition plan," said Jennifer Kwao.

According to the same publication quoted by Euronews, "reports from civil society and ongoing legal proceedings already suggest that TotalEnergies is not complying with the CSDDD and is prioritizing its profits above all else".

To this end, the European Parliament is expected to approve the Sustainability Directive on April 24, which should increase the adoption of international standards in developing countries and improve the living conditions of people in these countries.

Obligations under this directive will be phased in three years after its entry into force in 2027. These rules, according to the same publication, will apply to EU companies with more than 1,000 employees and a worldwide net turnover of more than 450 million euros and to third-country companies with a net turnover of more than 450 million euros in the EU.

"The CDSD will oblige EU countries to apply effective, proportionate and dissuasive sanctions in the event of non-compliance, including maximum fines of at least 5% of the company's worldwide net turnover," adds the portal.

In addition, Climate Action Network Europe believes that TotalEnergies would be in breach of the CSDDD's broad requirement to take real steps to 'effectively address' negative impacts and could face legal action for failing to do so in Mozambique.

However, the NGO recalls that TotalEnergies is currently facing legal proceedings in France for its alleged negligence during the 2021 terrorist attack in northern Mozambique.