Maputo, June 9, 2025 (Lusa) - The non-governmental organisation Oil Change International (OCI) has called on the United Kingdom to reconsider its decision to finance TotalEnergies’ LNG project in Cabo Delgado province in the north of Mozambique, alleging violations of human rights and international environmental commitments.
"The letter sent by OCI (a research, communication, and advocacy organization focused on exposing the true costs of fossil fuels) argues that financing the Liquefied Natural Gas (LNG) project in Mozambique goes against the United Kingdom’s obligations under international law to promote human rights in business, both domestically and abroad,” said OCI, an environmental organisation linked to research and advocacy for a world without fossil fuels, in a statement posted on its website.
At issue is the Area 1 consortium project, led by TotalEnergies, which is currently developing the construction of a plant in Afungi, near Palma, for natural gas exploration in the Rovuma basin, Cabo Delgado province, in northern Mozambique.
The project, valued at US$20 billion (€17.6 billion), has been suspended since 2021, when a force majeure clause was invoked due to attacks attributed to terrorist groups in Cabo Delgado, but the multinational recently announced that it will resume this year.
The force majeure clause forced TotalEnergies to seek refinancing for the project and, on March 19 this year, the oil company said that the US$15 billion (€13 billion) in financing to resume the megaproject was “almost closed”, after approval by the US bank Exim, which will provide US$4.7 billion (€4.3 billion) for the construction of the plant.
In addition to Exim Bank, the Asian banks in the financing consortium had also reconfirmed financing of around US$5 billion (€4.5 billion), with only the reconfirmation of financing from European banks and financing agencies, including the United Kingdom, still pending.
According to OCI, in June 2020, the UK Government took the decision to provide US$1.15 billion of financing for the project through UK Export Finance, making it one of the largest overseas fossil fuel finance packages by the UK.
"OCI calls on the Government, which is currently seeking legal advice on the withdrawal of its financing, to immediately commit to withdrawing its decision to provide UK financing for the LNG project or potentially face legal action," the organisation adds, pointing to several cases of alleged human rights violations in communities during fighting between government forces and insurgents.
TotalEnergies has a 26.5% stake in this project, mainly intended for customers in Asia, alongside Mozambican partners and Japan’s Mitsui (20%).
Mozambique has three approved development projects for the exploration of natural gas reserves in the Rovuma basin, ranked among the largest in the world, off the coast of Cabo Delgado.
Since October 2017, gas-rich Cabo Delgado has been facing an armed rebellion that has left thousands dead and caused a humanitarian crisis with more than a million people displaced.
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