French oil major Total has signed a security pact with Mozambique to protect a $20 billion natural gas project, media reports said. The project is developed in the country.
It is reported that a joint task force will be formed to strengthen the security for Mozambique LNG project activities in the Afungi site. In addition, security will be provided across the border area of project operations. Total has a stake of 26.5 percent in the project. Other companies like ENH holds 15 percent, Mitsui at 20 percent, ONGC Videsh at 10 percent, Beas Rovuma Energy Mozambique at 10 percent, BPRL Ventures at 10 percent and PPTEP at 8.5 percent.
Ernesto Elias Tonela, minister of mineral resources and energy, said in the statement, “This … bolsters security measures and endeavours to create a safe operating environment for partners like Total which enables their ongoing investment in Mozambican industry.”
In fact, the project is expected to begin production next year. The project also comprises development of the Golfinho and Atum fields. These fields are located within Offshore Area 1 which has more than 60 trillion cubic feet of gas resources.
Ronan Bescond, country chair of Total in Mozambique, told the media, “In view of the security situation in the Province of Cabo Delgado, our priority is to ensure the security of our workforce, many of whom residing in neighboring communities, and of the project operations. On behalf of our Area 1 partners, we appreciate the support provided by the government of Mozambique for the secure delivery of the project.”