BACKGROUND
On September 26, TotalEnergies distanced itself from allegations of human rights abuses linked to the Afungi LNG project in Mozambique in 2021. TotalEnergies, holding a 26.5% stake in the USD 20 billion project, alongside partners like ENH, Mitsui, and ONGC, stated it was unaware of the incidents, which involved Mozambican military forces detaining, torturing, or killing 180 to 250 civilians at the site between July and September 2021. The victims were mostly civilians fleeing an Islamist insurgency in Cabo Delgado.
CURRENT SECURITY SITUATION & COMMERCIAL DYNAMICS
The Islamist insurgency in Cabo Delgado continues to threaten business operations despite security improvements by Mozambican and Rwandan forces, especially around LNG sites in Palma and Mocimboa da Praia. Insurgent activities persist in forested areas like Quissanga and Macomia. In late September, an insurgent attack near Palma marked the closest assault since 2022, and another occurred in Mocimboa da Praia district. Security forces remain on high alert, with intensified joint operations by Rwandan and Mozambican forces.
A notable shift in security for the Afungi LNG project sees Isco Segurança, a Rwandan-Mozambican joint venture, taking over security duties. Rwanda’s growing influence in the LNG sector raises concerns about the transparency of its financial and commercial ties with Mozambique. While Rwandan troops have bolstered security, insecurity has caused delays in LNG production. TotalEnergies, ExxonMobil, and Eni have postponed resuming operations at the Afungi and Rovuma projects, citing terrorism risks. TotalEnergies has also initiated community development programs to improve relations, but the full resumption of LNG production depends on further security improvements. ExxonMobil aims to restart operations by 2026.
OUR ANALYSIS AND ADVICE
The human rights violation allegations at the Afungi LNG facility underscore significant legal and reputational risks for energy companies and multinational contractors involved in Mozambique’s LNG sector. These risks extend to service providers offering essential infrastructure, equipment, and logistical support to energy projects.
Multinational companies in Cabo Delgado must strengthen their due diligence to mitigate risks linked to human rights violations. This includes assessing the conduct of local security forces to avoid indirect involvement in abuses. Clear protocols should be established for managing partnerships with local security forces, with well-defined and regularly reviewed roles. To reduce vicarious liability, companies need to implement ethical conduct and human rights compliance training for all personnel, including subcontractors and security partners, updating these programs regularly. Engaging independent third-party assessors to evaluate local security partners’ conduct is also recommended to identify vulnerabilities and improvements.
Contact us today for a detailed & in-depth risk evaluation of the reputational, legal, and financial risks facing multinational energy companies operating in the region. For more information about our services, please visit our website or contact our
Regional Director, Bhargav Reddy at bhargav_reddy@apacassistance.com.
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