Sat. Dec 28th, 2024

French energy giant TotalEnergies is scrambling to unlock billions of dollars in frozen US funding for its natural gas project in Mozambique.

The multinational wants the $4.7 billion loan from the Exim Bank of the US approved before President-elect Donald Trump takes office, Jeune Afrique reported this week.

The bank had approved the credit back in 2019 but did not proceed as Islamist violence in the Cabo Delgado region forced Total to pull staff from the project in Afungi. Total has since contracted a consultancy firm to carry out lobbying work in Washington.

It fears that the new administration could bring about bureaucratic delays or impose new conditions. The outbreak of post-election violence in Mozambique has aso raised concerns in Washington.

But in a letter to US authorities on December 3, Total boss Patrick Pouyanne sought to reassure Washinton – writing that the security situation in Cabo Delgado had remarkably improved.

With the help of Rwandan and southern African forces, Mozambique has retaken territory from the insurgents and allowed some displaced civilians to return to their homes.

In February, Exim Bank’s Transactional Risk Committee approved a decision to restart of the loan, but no vote by the boardwas taken.

Total’s project in Mozambique has faced opposition from a section of Democratic lawmakers who are against American financing going to fossil fuel projects.

By Joy

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