Mozambique, Total sign $20 billion security pact for natural gas protection

French oil major, Total has signed a security arrangement with the Mozambican military. The $20billion dollar security pack will boost the safety of their crew and equipment.  

Total’s investments in Mozambique includes Golfinho and Atum natural gas which are still in development. The gas fields are part of Total’s Offshore Area 1 concession and contains more than 60 trillion cubic feet of gas. It will have a liquefaction plant with a of 31.1 million tonnes per annum capacity.  The production is projected to begin in 2024.

This development comes in the wake of the Mozambican military’s insurgency tackle in the Northern part of the country- the same region Total has investments in. The signed pact is meant to boost the security.

The militia, Ahlu Sunnah Wal Jammah –ASWJ has been linked to the increasing spate of violent confrontation with the Mozambican military.

Mozambican security forces have been battling militias in the ‘gas-rich’ north of the country. Recent violence in the Cabo Delgado region has claimed many lives.

Reports indicate that the group took the soldiers by surprise with their guerilla tactics. It is believed that with more funding for the security forces will be able to curb and curtail the militias advancement. A projection that the pact should prove right or wrong. 

Total acquired the assets in the last quarter of 2019 at the cost of 3.9 billion US dollar from Anadarko, following three months of negotiations.

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