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United Kingdom withdraws funding for TotalEnergies’ mega gas project

The UK Export Finance (UKEF) announced the withdrawal of its $1.15 billion (988 million euros) funding from the TotalEnergies gas project in Mozambique, a move confirmed by the British government in 2020. This follows the invocation of ‘force majeure’ by TotalEnergies due to terrorist attacks in Palma, which led to the suspension of the $20 billion (17.2 billion euros) project, with the suspension lifted last October.

In a statement to parliament, Peter Kyle, the UK Secretary of State for Business, Trade, and Employment, explained, “In preparation for the project’s resumption, UKEF received a proposal to alter the originally agreed financing terms (…). After a detailed analysis, the UK government decided to terminate UKEF’s participation in the project, concluding that the risks have increased since 2020.”

Kyle further noted, “This decision is based on a comprehensive project assessment, prioritizing the British taxpayers’ interests, which are best served by ending our participation at this time. Although these decisions are never easy, the government believes that British funding for this project does not align with our national interests.”

Kyle also stated, “UKEF will reimburse the project for the premium paid, reflecting the department’s withdrawal from risk exposure in the project.”

Mozambican President Daniel Chapo dismissed accusations of human rights violations associated with the TotalEnergies megaproject as false. “Upon the dissemination of misinformation and manipulation of public opinion at both the national and international levels concerning human rights respect in Cabo Delgado, we first assigned the National Human Rights Commission [CNDH] to conduct an extensive investigation (…) throughout the province, and they found no evidence of the alleged issues highlighted by media and some self-proclaimed international investigators,” Chapo stated.

He assured that no violations were found in the commission’s investigation, contrary to claims presented by a European organization against TotalEnergies for “war crimes.”

The European Center for Constitutional and Human Rights (ECCHR) filed a criminal complaint in France on November 17, accusing TotalEnergies of “complicity in war crimes, torture, and enforced disappearance” of civilians in the gas megaproject. The organization alleged the multinational directly financed and materially supported the Joint Task Force, comprising Mozambican armed forces, which, from July to September 2021, allegedly detained, tortured, and killed dozens of civilians at the TotalEnergies gas facilities.

ECCHR noted that they submitted the complaint to the French National Anti-Terrorism Prosecutor’s Office (PNAT), focusing on the so-called ‘container massacre’ allegations at the company’s facilities in Cabo Delgado, initially revealed by Politico in September 2024.

The latest report by the Armed Conflict Location and Event Data Project (ACLED) up to November 23 indicates that out of 2,270 violent events recorded since the armed insurgency began in Cabo Delgado in October 2017, a total of 2,107 involved elements affiliated with the Islamic State Mozambique (EIM), resulting in 6,341 deaths.

The Mozambican government has given TotalEnergies 30 days to present a timeline for resuming the gas megaproject. This, the government added, should not wait for the conclusions of an audit required for the incurred costs during the ‘force majeure’ period.

A resolution from the Council of Ministers on November 19, reported by Lusa, stated that “the resumption and implementation of the project,” which was suspended for four and a half years due to terrorist attacks, “should not be conditioned on the completion and presentation of the audit report” on the costs incurred during this period.

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