Gas in Mozambique : a windfall for the industry, a curse for the country
While Justiça Ambiental (JA!) / Friends of the Earth Mozambique and Friends of the Earth France had been warning since 2019 about Total’s responsibilities in developing its mega-gas project Mozambique LNG 1, despite the pre-existing and ongoing security and humanitarian situation, and the numerous human rights violations, this complaint 2 confirms that the French multinational had not taken the necessary measures in view of the serious existing risks. While the situation in Cabo Delgado remains dramatic, JA! and Friends of the Earth France denounce Total’s intention to restart operations by the end of the year, with the support of French banks Crédit Agricole and Société Générale 3.
In June 2020, Friends of the Earth France, Mozambique and International published an investigative report entitled « Gas in Mozambique : a windfall for the industry, a curse for the country » 4, detailing the risks and impacts of the project on human rights, the environment and the climate, and the complicity of the French State. At the time, our organizations warned: « In a region plagued by escalating conflict, gas development is already turning into a nightmare for the people of Cabo Delgado ».
Following the terrorist attack in Palma, which caused the death of almost 1,200 civilians, Total declared force majeure and suspended operations in April 2021 5. Total was thus seeking to free itself from its contractual obligations with its subcontractors, many of whom are local. This not only affected the workers of Total’s subcontractors, but above all aggravated the situation of the local populations displaced by the gas project, who were abandoned without land or livelihoods, and with the compensation process halted without certainty around when or if it would resume.
The criminal complaint filed against Total confirms the transnational corporation’s scant regard for the local population and its subcontractors: despite being aware of the deteriorating security situation in Cabo Delgado and the likelihood of an imminent terrorist attack, the company was criticized for not even having adopted an evacuation plan. Worse still, according to the complaint, which is based in particular on the investigation by journalist Alex Perry 6, Total refused to provide assistance to the security company DAG, which had requested fuel for its rescue missions during the Palma attack. Prior to the attack, Total had pressured the Mozambican government to guarantee security to the gas area, which was reflected by the fact that, on the day of the attack, over 800 soldiers were protecting Total’s Afungi site whereas there was no security protecting the town nor the civilians 7.
Anabela Lemos, JA!’s Director, says: “Total’s negligence towards its subcontractors is another expression of the company’s criminal disregard for the people affected by its activities. We shall not forget that the majority of the victims of the Palma attack were the local people. We believe this legal action is important to challenge the impunity of these companies and we hope it expands the possibilities for Mozambican communities to pursue justice as well.”
The complaint also refers to the Uprights study, commissioned by Friends of the Earth Mozambique, France and Europe 8, which identified serious shortcomings in Total’s human rights impact assessments. In particular, the report highlights the company’s failure to account for the armed conflict and to address the human rights impact of its operations. As a result, the rights of local communities were violated.
Juliette Renaud, Corporate Regulation Senior Campaigner with Friends of the Earth France, says: “Since entering the gas business in Mozambique in 2019, Total has consistently underestimated the seriousness of the security and humanitarian situation, even failing in its duty to come to the aid of local communities and workers in mortal danger. Impunity must end and Total must be held accountable in court”.
Lorette Philippot, Private Finance Campaigner with Friends of the Earth France, says: “Today, Total is still trying to make its financiers and investors believe that the situation is under control and that the actions carried out by Mozambique LNG are having a positive impact on the living conditions of the population. Crédit Agricole and Société Générale need to urgently abandon this myth and stop supporting the oil and gas majors’ projects in Mozambique.”
On September 27, Total CEO Patrick Pouyanné announced to investors his goal of restarting the Mozambique LNG project by the end of 2023 9. However, on the ground, fundamental issues remain unresolved and most of the shortcomings identified by the Uprights report have still not been addressed by Total. Even though there are improvements in the security situation in Palma and around the project site, communities still don’t feel safe, civil society organizations and journalists are not operating freely, and the insurgency remains active in other areas of the province.
This project should not be resumed: the ground reality remains problematic, the gas contracts are unjust, and the risks to Mozambique’s people, climate and economy are extremely high.
Société Générale is a financial advisor to Mozambique LNG and, alongside Crédit Agricole, participated in its financing in 2020. Crédit Agricole is also acting as financial advisor to Eni and ExxonMobil for the development of their Rovuma LNG gas project, planned for the same site as Mozambique LNG and with which it would share infrastructure. https://www.amisdelaterre.org/communique-presse/mozambique-societe-generale-et-credit-agricole-soutiennent-le-projet-gazier-tres-controverse-de-total/