French energy giant Total on Monday, April 26 confirmed it is suspending work on a $20 billion gas project in Mozambique following recent terrorist assault in the country.
As of Monday, the company said it had removed all staff from the site on the Afungi Peninsula, in northern Mozambique.
Total had already suspended plans to resume construction work at Mozambique LNG and cut staffing levels to the minimum in late March after attacks on the nearby town of Palma in the north of the country, reports indicate.
"Considering the evolution of the security situation... Total confirms the withdrawal of all Mozambique LNG [Liquefied Natural Gas] project personnel from the Afungi site," the company said in a statement.
In addition, the company declared a "force majeure" situation beyond its control, a legal concept meaning it can suspend fulfilling contractual obligations.
Last week, the Confederation of Economic Associations of Mozambique (CTA) said Total had suspended contracts with a series of businesses indirectly involved in the gas project.
CTA president Agostinho Vuma said at the time that Total had assured that the gas project would resume "once it is safe", although the energy company itself declined to comment, according to local media reports.
The violence has killed at least 2,600 people and displaced nearly 700,000, raising doubts over the viability of the biggest single investment in Africa even before the latest raid.
March's attack on Palma took place just 10 kilometres (six miles) from the gas project's nerve centre, despite a government commitment to set up a 25-kilometre security radius around the site.
Dozens were killed in the assault, according to provisional government tallies.
Hundreds of others, including many foreign workers, were evacuated by air and sea while thousands of locals walked to nearby districts.
The LNG project includes development of the Golfinho and Atum offshore natural gas fields and the construction of a two-train liquefaction plant.
Total, the project's operator, obtained a $14.9 billion debt financing package in July to fund its rollout.