• UK and Netherlands withdraw $2.2B support over rights abuse concerns
  
• Allegations link security forces guarding TotalEnergies LNG site to war crimes
  
• Project restart hinges on budget approval, legal clarity, and funder confidence

The UK and the Netherlands have withdrawn a combined 2.2 billion dollars in support for the TotalEnergies-led Mozambique LNG project. The decisions followed government-commissioned reviews by specialist firms into allegations of human rights abuses linked to the gas development.

The UK said on Monday it was ending its 1.15 billion dollar commitment, first pledged in 2020 through UK Export Finance. The Dutch government separately confirmed that TotalEnergies had withdrawn its request for 1.1 billion dollars in export insurance, which in turn ended the involvement of major credit insurer Atradius.

The two withdrawals come as concerns persist over security operations in Cabo Delgado. NGOs, funder-commissioned firms and French judicial authorities have for months examined alleged abuses by Mozambican units assigned to protect the Mozambique LNG site in 2021.

In November, the European Center for Constitutional and Human Rights (ECCHR) filed a complaint in France accusing TotalEnergies of complicity in war crimes. It alleges the company supported the Joint Task Force, composed of Mozambican forces and implicated in arbitrary detentions that caused civilian deaths. The case draws on internal reports sent to financiers, a Politico investigation and testimony indicating that between 180 and 250 people were detained, with only a few dozen reportedly surviving after the intervention of Rwandan troops.

TotalEnergies rejects the allegations, saying it withdrew its staff in April 2021 and has received no credible information about such abuses. Mozambican President Daniel Chapo also dismissed the claims, saying investigations by the Attorney General and the National Human Rights Commission found no crimes committed by the security forces.

The developments add to an already complex financing picture. TotalEnergies lifted the force majeure declared after the 2021 Palma attack in October, but resuming work now depends on Maputo approving a revised budget that increases project costs to 24.5 billion dollars, up 4.5 billion dollars from the original plan.

On the ground, Cabo Delgado continues to face sporadic attacks despite relative stabilization by Rwandan forces. TotalEnergies plans a restart only in what it calls a confined mode, with access limited to sea and air to reduce risk.

While more than 70 percent of the project’s financing is secured and 90 percent of future production is already contracted, the situation highlights the fragility of a venture that depends on TotalEnergies’ legal position, Mozambique’s political decisions and the government’s ability to restore confidence among international funders.

Olivier de Souza