ExxonMobil CEO Darren Woods recently met with Mozambique’s President Daniel Chapo on the sidelines of the United Nations General Assembly in New York, where he requested security guarantees for the implementation of a major natural gas project in Cabo Delgado province. The information was reported this week by the British newspaper Financial Times, citing sources with direct knowledge of the meeting.
The project, valued at 30 billion dollars (1.9 trillion meticais), foresees the construction of a liquefied natural gas (LNG) terminal in the north of the country, considered one of the largest investments of its kind in Africa. However, ongoing instability caused by the armed insurgency in Cabo Delgado continues to cast doubts on the feasibility of carrying it out safely.
According to the source, Darren Woods raised specific concerns about the threats posed by insurgent groups linked to the self-proclaimed Islamic State, which since 2017 have carried out attacks that resulted in thousands of deaths, destruction of infrastructure, and the forced displacement of hundreds of thousands of people.
The insurgency has previously led to the suspension of other energy projects in the region, most notably that of TotalEnergies, which declared force majeure in 2021 after the attacks on Palma, a logistical hub near the operation area.
During the meeting, Woods was accompanied by Dan Ammann, head of ExxonMobil’s exploration and production segment. The President of the Republic, in statements to the newspaper, reiterated the Government’s commitment to ensuring security conditions for the investment, stressing that once completed, the project “could represent a profound change in the national economy and in the lives of Mozambicans.” ExxonMobil leads the gas liquefaction component in Area 4 of the Rovuma Basin, in partnership with other companies and with the participation of the Mozambican state through the National Hydrocarbons Company (ENH). The final investment decision (FID), initially expected in 2024, was postponed to 2026 precisely due to concerns surrounding security and stability in the project area.
Meanwhile, the US oil major has maintained close dialogue with TotalEnergies, the Government, and other Rovuma LNG partners to assess the conditions required to move forward with the investment. “We are working to ensure that all prerequisites are in place to enable a solid final investment decision,” an ExxonMobil spokesperson said.
For his part, TotalEnergies CEO Patrick Pouyanné revealed this week that the company is remobilizing on the ground and preparing to formally lift the force majeure status in the coming weeks, signaling a resumption of activities in the region.
Source: Diário Económico
