Mozambican government hopes to shorten deadline for restart of natural gas works

Governo moçambicano espera encurtar prazo para reinício das obras de gás natural

The Minister of Finance said Wednesday he hoped that Total's work in Cabo Delgado would restart before the one-year deadline the company estimated the government needed to resolve insecurity in the region.

"I think that the expected delay of the works might be reduced because we pointed out one year as the time needed to allow the project to restart, but looking at the situation today, I think that won't be the case, we are doing our best," said the governor, showing optimism in reducing the deadline, estimated for April next year.

Answering a question from the director of the African department of the International Monetary Fund (IMF) during the fourth Forum on Resilience in Africa, on the panel 'The nexus between security, economic growth, and investment', organized by the African Development Bank (ADB), Adriano Maleiane showed optimism that the works will restart before the one-year suspension deadline put forward by the authorities.

"The outlook is good because peace is holding, displaced people are returning to their homes, and we are now in the process of creating conditions for them to voluntarily come home and not simply wish to come home one day," the minister added.

French oil company Total, leader of the Area 1 project in northern Mozambique, suspended work on the facility near Palma on March 24, the day the town was attacked by insurgents, and a month later announced the indefinite suspension of the entire project.

Valued at between 20 and 25 billion euros, Total's gas extraction megaproject is the largest private investment underway in Africa, backed by several international financial institutions, and envisages the construction of industrial units and a new city between Palma and the Afungi peninsula.

Lusa Agency

Share this article