TotalEnergies bets big as chaos reigns
TotalEnergies faces mounting security concerns as it prepares to resume work on a $24.5 billion natural gas project in Mozambique after a four-year suspension. Islamic State-linked militants have stepped up attacks across Cabo Delgado province, where the French company and Exxon Mobil operate facilities. The United Nations reports that civilian attacks have nearly doubled this year to their highest level in years.
More than 90,000 residents have fled violence since late September, raising doubts about whether construction can proceed safely. Andrew Bogrand from Oxfam America visited communities near the site and found widespread alarm among residents, police and workers about deteriorating conditions. Militants recently entered Palma, which borders the liquefied natural gas complex, and filmed propaganda at a mosque in nearby Mocimboa da Praia.
The suspension has cost TotalEnergies $4.5 billion and increased total project expenses to $24.5 billion, up from an initial estimate of $20 billion. The company paid $3.9 billion for its 26.5 percent stake and has invested additional funds alongside its partners. Mozambique bonds rose 2.9 percent on Monday after TotalEnergies announced plans to restart development, which officials hope will transform the impoverished nation’s economy.
