French energy company Total confirmed on Monday that it has withdrawn all personnel from its northern Mozambique liquefied natural gas (LNG) project's Afungi site due to the "evolution of the security situation" in the Cabo Delgado province in the country.
Insurgents, with links to the Islamic State, attacked a town nearby earlier this year.
In August, a memorandum of understanding with Total was inked and with it came the promise of manifold benefits for the economy and the people of Mozambique.
The $20 billion gas project in Mozambique is one of the biggest private investments in Africa. Total bought a 26.5% stake in the LNG development for $3.9 billion in 2019. The aim was to start gas shipments in 2024.
Total has now said that the company, as operator of the Mozambique LNG project, is declaring "force majeure" - which means that parties in an agreement or contract cannot fulfill their obligations due to circumstances beyond their control, a so called "act of God".
"Total expresses its solidarity with the government and people of Mozambique and wishes that the actions carried out by the government of Mozambique and its regional and international partners will enable the restoration of security and stability in Cabo Delgado province in a sustained manner," it said in a statement.