Unfazed: Energy companies continue with Mozambique initiatives despite report of massacre
Exxon Mobil and other companies continue their activities in the African nation, despite allegations that oil and gas projects incite unrest.
TroibNews 
Despite troubling reports of a massacre involving government troops and a persistent Islamist insurgency jeopardizing Africa's largest private investment, U.S. and international energy companies are still considering projects in Mozambique.
A door-to-door inquiry into the 2021 massacre identified at least 97 victims killed by Mozambican forces. Following the PMG report on the incident, European lawmakers and human rights activists called for investigations into the deaths and the role of French energy giant TotalEnergies, which has denied any wrongdoing.
The company had enlisted government security forces to protect its site during clashes between the government and an Islamist insurgent group.
In the wake of intensified unrest following a contested election in Mozambique—and accusations that internationally funded energy projects have drawn insurgent hostility—U.S. and international firms are nonetheless pursuing opportunities to access the nation’s extensive natural resources.
U.S.-based ExxonMobil, which has its own gas project plans in Mozambique, informed PMG that it expects to reach a final investment decision on its $30 billion Rovuma LNG project in 2026, aiming to ship its first cargo of fuel by 2030 if approved.
"We will continue to work in close collaboration with the Government of Mozambique and expect the security situation to stabilize and be managed through comprehensive, multi-layered security that builds on the lessons learned by [Exxon] and many others over the years,” an Exxon spokesperson said.
Additionally, Australian-owned Twigg Exploration and Mining, which secured a $150 million loan from the federal U.S. Development Finance Corp., confirmed progress on its graphite mining project.
TotalEnergies’s project, which relies on U.S. equipment and services, remains underway. The U.S. Export-Import Bank is still reviewing the company’s application for financing for its $20 billion Mozambique LNG project, as confirmed by an agency spokesperson.
Final decisions on project financing may fall to the incoming Trump administration.
Environmental group Friends of the Earth is urging the U.K. government to withdraw support for TotalEnergies' Mozambique gas project, even as the French company has claimed it had “no knowledge of the alleged events described” nor “any information indicating that such events took place.”
Human rights and environmental advocates have called on EXIM, the Bank's shorthand, to reject the project outright.
The TotalEnergies gas development has been criticized for following a “failed development model” that prioritizes the extraction of fossil fuels by U.S. and European firms with minimal benefits for local populations, according to Collin Rees, U.S. program manager with Oil Change International. He emphasized that EXIM should reject a venture that “risks becoming an absolutely catastrophic human rights disaster,” potentially exacerbating regional instability and increasing emissions.
“I think what you're seeing in this case is working hand-in-hand with a future Trump administration, essentially paving the way for this disastrous project to go forward,” Rees stated.
In 2019, EXIM had announced $5 billion in financing for the TotalEnergies project, which involves converting gas into liquid form for export by ship. This amount was later reduced to $4.7 billion when TotalEnergies declared a force majeure in 2021 following a previous ISIS attack in March in the nearby town of Palma that left over 1,300 people dead and nearly 210 abducted. Other Western-backed projects also declared force majeure until security conditions improved.
“EXIM continues to conduct due diligence on the project operator's plans to resume construction and development activities,” a spokesperson for the agency noted via email. “As per its regular procedures, EXIM will review and evaluate any proposed changes to the terms of its approved financing of the Mozambique LNG project.”
While EXIM is assessing the TotalEnergies project, no timetable exists for it to return to the bank for a vote on the financing, according to a senior official, and no disbursements have been made.
The agency must ensure that conditions in Mozambique are secure enough for investment. Its hesitance to include the gas project in its official agenda for funding appears indicative of a cautious board that is not ready to make a decision.
With a change in administration, EXIM President and Board Chair Reta Jo Lewis is expected to resign, yet two Democrats will likely remain on the board alongside one Republican, creating uncertain dynamics regarding the board's position on the project given recent security developments.
The Mozambique Defense Ministry has rejected claims of brutality from its forces, stating in a fall press release that the armed personnel were focused solely on combating terrorism, protecting civilians, and securing vulnerable areas.
As PMG reported further details of the 2021 massacre, the security situation in Mozambique has continued to worsen, with over 100 fatalities stemming from protests and strikes following October’s disputed election.
Last month, the State Department expressed concern about "escalating violence against civilians" in Mozambique, highlighting the need to address the deteriorating security landscape.
This decline in stability occurred in the context of worries expressed by both Mozambique and TotalEnergies regarding the status of EXIM financing. A U.S. government summary from a February 5 meeting between State and Energy department officials, along with Mozambique Ambassador Alfredo Fabião Nuvunga, indicated these concerns, especially after a TotalEnergies representative sought “reassurance” from the Biden administration regarding potential delays in financing.
Officials from the State Department assured Nuvunga that a pause on U.S. domestic LNG export license approvals would not hinder EXIM financing for TotalEnergies' facility, providing an offer to engage EXIM regarding a potential letter of comfort.
TotalEnergies declined to comment on financing for its project, while a State Department spokesperson neither confirmed nor denied the meeting details.
Despite ongoing federal reviews of the project, U.S. private investments in Mozambique's energy sector are anticipated to resume.
In December 2017, Exxon secured the Mozambique Area 4 gas concession, aiming to exploit some of the largest gas deposits globally by liquefying the gas for international shipping. However, deteriorating security conditions subsequently caught Exxon officials off guard, as they had planned to establish an office in Maputo as their local headquarters, according to a source familiar with the company's plans.
Bloodshed and ongoing unrest critically influenced Exxon’s delay in making a final investment decision regarding the Rovuma LNG project, the source revealed, speaking on the condition of anonymity.
Exxon was unaware of the alleged massacre at the TotalEnergies location at the time it occurred in 2021, the source added.
Both TotalEnergies and Exxon’s projects are located on the Afungi Peninsula in the northern part of Mozambique, near its border with Tanzania.
Frederick R Cook contributed to this report for TROIB News
A door-to-door inquiry into the 2021 massacre identified at least 97 victims killed by Mozambican forces. Following the PMG report on the incident, European lawmakers and human rights activists called for investigations into the deaths and the role of French energy giant TotalEnergies, which has denied any wrongdoing.
The company had enlisted government security forces to protect its site during clashes between the government and an Islamist insurgent group.
In the wake of intensified unrest following a contested election in Mozambique—and accusations that internationally funded energy projects have drawn insurgent hostility—U.S. and international firms are nonetheless pursuing opportunities to access the nation’s extensive natural resources.
U.S.-based ExxonMobil, which has its own gas project plans in Mozambique, informed PMG that it expects to reach a final investment decision on its $30 billion Rovuma LNG project in 2026, aiming to ship its first cargo of fuel by 2030 if approved.
"We will continue to work in close collaboration with the Government of Mozambique and expect the security situation to stabilize and be managed through comprehensive, multi-layered security that builds on the lessons learned by [Exxon] and many others over the years,” an Exxon spokesperson said.
Additionally, Australian-owned Twigg Exploration and Mining, which secured a $150 million loan from the federal U.S. Development Finance Corp., confirmed progress on its graphite mining project.
TotalEnergies’s project, which relies on U.S. equipment and services, remains underway. The U.S. Export-Import Bank is still reviewing the company’s application for financing for its $20 billion Mozambique LNG project, as confirmed by an agency spokesperson.
Final decisions on project financing may fall to the incoming Trump administration.
Environmental group Friends of the Earth is urging the U.K. government to withdraw support for TotalEnergies' Mozambique gas project, even as the French company has claimed it had “no knowledge of the alleged events described” nor “any information indicating that such events took place.”
Human rights and environmental advocates have called on EXIM, the Bank's shorthand, to reject the project outright.
The TotalEnergies gas development has been criticized for following a “failed development model” that prioritizes the extraction of fossil fuels by U.S. and European firms with minimal benefits for local populations, according to Collin Rees, U.S. program manager with Oil Change International. He emphasized that EXIM should reject a venture that “risks becoming an absolutely catastrophic human rights disaster,” potentially exacerbating regional instability and increasing emissions.
“I think what you're seeing in this case is working hand-in-hand with a future Trump administration, essentially paving the way for this disastrous project to go forward,” Rees stated.
In 2019, EXIM had announced $5 billion in financing for the TotalEnergies project, which involves converting gas into liquid form for export by ship. This amount was later reduced to $4.7 billion when TotalEnergies declared a force majeure in 2021 following a previous ISIS attack in March in the nearby town of Palma that left over 1,300 people dead and nearly 210 abducted. Other Western-backed projects also declared force majeure until security conditions improved.
“EXIM continues to conduct due diligence on the project operator's plans to resume construction and development activities,” a spokesperson for the agency noted via email. “As per its regular procedures, EXIM will review and evaluate any proposed changes to the terms of its approved financing of the Mozambique LNG project.”
While EXIM is assessing the TotalEnergies project, no timetable exists for it to return to the bank for a vote on the financing, according to a senior official, and no disbursements have been made.
The agency must ensure that conditions in Mozambique are secure enough for investment. Its hesitance to include the gas project in its official agenda for funding appears indicative of a cautious board that is not ready to make a decision.
With a change in administration, EXIM President and Board Chair Reta Jo Lewis is expected to resign, yet two Democrats will likely remain on the board alongside one Republican, creating uncertain dynamics regarding the board's position on the project given recent security developments.
The Mozambique Defense Ministry has rejected claims of brutality from its forces, stating in a fall press release that the armed personnel were focused solely on combating terrorism, protecting civilians, and securing vulnerable areas.
As PMG reported further details of the 2021 massacre, the security situation in Mozambique has continued to worsen, with over 100 fatalities stemming from protests and strikes following October’s disputed election.
Last month, the State Department expressed concern about "escalating violence against civilians" in Mozambique, highlighting the need to address the deteriorating security landscape.
This decline in stability occurred in the context of worries expressed by both Mozambique and TotalEnergies regarding the status of EXIM financing. A U.S. government summary from a February 5 meeting between State and Energy department officials, along with Mozambique Ambassador Alfredo Fabião Nuvunga, indicated these concerns, especially after a TotalEnergies representative sought “reassurance” from the Biden administration regarding potential delays in financing.
Officials from the State Department assured Nuvunga that a pause on U.S. domestic LNG export license approvals would not hinder EXIM financing for TotalEnergies' facility, providing an offer to engage EXIM regarding a potential letter of comfort.
TotalEnergies declined to comment on financing for its project, while a State Department spokesperson neither confirmed nor denied the meeting details.
Despite ongoing federal reviews of the project, U.S. private investments in Mozambique's energy sector are anticipated to resume.
In December 2017, Exxon secured the Mozambique Area 4 gas concession, aiming to exploit some of the largest gas deposits globally by liquefying the gas for international shipping. However, deteriorating security conditions subsequently caught Exxon officials off guard, as they had planned to establish an office in Maputo as their local headquarters, according to a source familiar with the company's plans.
Bloodshed and ongoing unrest critically influenced Exxon’s delay in making a final investment decision regarding the Rovuma LNG project, the source revealed, speaking on the condition of anonymity.
Exxon was unaware of the alleged massacre at the TotalEnergies location at the time it occurred in 2021, the source added.
Both TotalEnergies and Exxon’s projects are located on the Afungi Peninsula in the northern part of Mozambique, near its border with Tanzania.
Frederick R Cook contributed to this report for TROIB News
