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Area 1: TotalEnergies Settles Compensation Claims in Afungi

Area 1: TotalEnergies Settles Compensation Claims in Afungi

TotalEnergies has announced significant progress in resolving compensation claims related to the resettlement of communities in Area 1, on the Afungi peninsula, Cabo Delgado. After weeks of protests by groups demanding additional land or compensation, the company has indicated that the situation is being regularised.

According to information from Carta de Moçambique, the Mozambique LNG project, operated by TotalEnergies, received rights to use around 6,000 hectares of land on the Afungi peninsula for the development of infrastructure linked to natural gas exploration in the Rovuma basin.

In May 2024, the company completed the resettlement of the families living in the area covered by the DUAT (Right of Use and Utilisation of Land). As part of this process, the resettled residents received new housing in the village of Quitunda, as well as compensation in cash and land.

Sources close to the project confirm that the resettlement was completed with 100 per cent of the compensation paid. However, new claims have arisen from groups not directly covered by the DUAT, but who used land in the area for agricultural practices. These communities, referred to as the ‘economic community’, were entitled to new land outside the DUAT, which was parcelled out by TotalEnergies with access roads opened up for the purpose.

Recently, the company has faced additional challenges due to the opportunistic occupation of parcelled areas by people from other regions of Cabo Delgado and even neighbouring provinces. Many of these occupants have planted trees and carried out burn-offs to claim compensation rights. TotalEnergies estimated that around 2,000 invaders were involved and, a fortnight ago, 50 demonstrators protested near the company’s camp with placards demanding compensation.

The situation was eased through negotiations conducted by TotalEnergies, which, with the support of photographs and reports from members of the local communities, identified illegal and opportunistic occupations. The company has pledged to provide assistance to the affected communities, with the aim of avoiding social vulnerabilities, although the details of this assistance are still being worked out.

This situation highlights the challenges faced by mega-projects such as Mozambique LNG, which attract internal migration in search of the benefits associated with investments. The project has remained in full force since April 2021, due to the terrorist attacks in Palma, and TotalEnergies leads the operation with a 26.5 per cent stake, alongside other international partners.

The company reaffirms its commitment to meeting the requirements of the resettlement plan and collaborating with local communities to promote sustainable solutions in line with government guidelines.

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