Oil Company Demands Billions to Resume Operations in Mozambique

Trygve Bolstad/UN

Pipeline carrying natural gas from Mozambique to South Africa.

TotalEnergies has reportedly asked the Mozambican government to pay U.S.$4.5 billion as its cost of closure before resuming operations in the country’s troubled northern region. The company declared a force majeure in 2021 and ceased operations as insurgents attacks escalated.

The French energy giant listed a host of demands in a letter to the Mozambican presidency, including security guarantees and the renegotiation and extension of its contract with the Mozambican authorities. Some cabinet ministers are said to have described the demands as "outrageous".

business Mozambique Southern Africa Petroleum