Mozambique Gas Development Project, villagers dispossessed for off shore drilling, Cabo Delgado, Mozambique

The project leads to major changes in Cabo Delgado province, displacing farming and fishing communities who lose their livelihoods, giving major incentives for the youth to join Islamist rebel groups.


Description
Discoveries of gas and oil deposits in the northern region of Mozambique (Cabo Delgado, by the Rovuma Basin), have triggered the interest of several fossil fuels’ multinationals. This description compiles mainly information about the Mozambique Gas Development Project, (hereafter the LNG project), led by the Texan company Anadarko. Yet there are many other companies exploring or getting ready to exploit in the area, such as the Dutch Shell, the Italian Eni or the Canadian Wentworth Resources. The development of gas industry in Cabo Delgado province is complicated with a local Islamist insurgency. The group is being called Ahlu Sunnah Wa-Jama, meaning, “followers of the prophetic tradition”. Its emergence is often compared to that of Boko Haram in Nigeria, that started as a religious group and transformed into a guerrilla group. Between October 2017 and February 2018, they are suspected to have killed more than 40 people in the province. Some of the arrested suspects reported to be opposing gas drilling and ask for the creation of an independent State, in northern Cabo Delgado and annexing also south of Tanzania. The militants do raid in villages located deep in the forest, burn houses and steal food. So, there is a triangular conflict between gas companies, villagers and he Islamist groups. More than 1,000 villagers have fled their homes, according to Human Rights Watch [1]. After new attacks in June 2018, thousands of villagers fled to Pemba, the capital of the province [2]. Following the attacks, the police announced to be taking additional measures to protect the companies in the province and the populations [3]. The root motivations of these attacks are complex. According to Eric Morier-Genoud (lecturer in African history at the Queen's University Belfast), decades of poverty and the sudden arrival of fossil fuels companies in the region make for a “potential power keg” [4]. Northern Mozambique is a poor and isolated part of the country. The high rates of unemployment among its youth triggers discontent. Since they lack access to means of livelihood, the male youth is unable to reach adulthood, meaning to get married and start their own families. Because of their dissatisfaction and lack of alternatives they become targets to be enrolled by Islamist armed rebels [5]. Also, in June 2018, the Bishop of Pemba, Luiz Fernando Lisboa, addresses these concerns in his pastoral letter, where “he stresses that these young men are not only "terrorists", but also the children of our families and villages. And he says their attacks are forcing us to ask serious question about "the future we are offering our youth", and about how our natural resources have failed to help our development although they could have "generated a better life for everyone in the province” [6]. Researcher Morier-Genoud makes several recommendations to face this tricky social and economic situation, advising both military and non-military measures. He mentions the need to send more troops to the north of the country, but yet preventing from vexing the Muslim community and he also suggests a political commitment to the issue of land ownership [7]. The tension with this Islamist rebel group have reached a new level by early 2019. If, so far the attacks were in isolated villages, by January 2019 the group attacked vehicles on main roads, killing 12 civilians [8]. The populations and NGOs are heavily questioning whether the police is actually protecting the civilians or only the companies. Two people were killed on January 20th,2019, in Maganja and that in spite of the fact that an army battalion was close by, at Anadarko’s site. These suspicions are all the more increasing after the arbitrary arrests of journalists in the region. Since early 2019, a journalist is been detained, after interviewing communities who were seeking refuge after suffering attacks in the district of Macomia (source, Friends of the Earth Mozambique). The Texan fossil fuels company Anadarko is the leading investor of the consortium meant to exploit the offshore area 1. Anadarko is also constructing a liquified natural gas (LNG) plant in Palma. Friends the Earth Mozambique has produced a short movie denouncing the consequences of the displacements triggered by the construction of the LNG plant. For the its construction, Anadarko displaced several villages, including the village of Quitupo. The residents of Quitupo were displaced near Senga. Yet that village is also under threat of being displaced by Shell, that wants to build another gas refinery in Senga [9]. The fishermen from Milamba have been forced to move 15 kilometers away from the sea. They are very concerned about how they will be able to feed their families since they will lose their ancestral way of living. Women farmers also express their concerns regarding the loss of families’ lands, they won’t be able to feed their children anymore with their traditional subsistence crops. In June 2015, after a national court decided in favor of Anadarko’s endeavors in the region, the U.S. company committed to a $180 million dollars resettlement package to affected communities. Even though since 2012 paralegal volunteers and NGOs have informed the locals about their rights [10], the villagers, both farmers and fishermen, have expressed their dissatisfaction regarding the compensation process. Farmers say that Anadarko promised them that for every hectare lost, they would be compensated with a new hectare. Yet that will most probably not be the case as the farmers recently heard they would be receiving 1,5 hectares maximum, no matter how many hectares they initially owned [2]. Such area would be unsustainable for the farmers. Paralegals have denounced threats they have received from the government and local police because of their volunteering work. Overall the populations and the paralegals denounce that the lands have been taken without prior consultation, agreement or proper compensation [11]. These allegations argue against Anadarko’s claim to be undertaking a legitimate resettlement process, started in November 2017, of the communities for the sake of the construction of the LNG plant [12]. In May 2018 there has been a demonstration of hundreds of young people in Palma, demanding jobs in the fossil fuels’ companies. They protest the current jobs are occupied by non-locals, that situation was also confirmed by the Bishop of Pemba. Their claims were not heard. A month later, in June, the President himself visited Cabo Delgado, promising jobs, even though he added these jobs were not quite yet available [13].



SOURCES

[1]

https://www.worldoil.com/news/2018/7/2/ethnic-tensions-menace-mozambique-natural-gas-boom

[2]

https://www.youtube.com/watch?v=oyiUEx7Kf4A

[3]

https://www.news24.com/Africa/News/mozambiques-gas-fuelled-future-threatened-by-jihadists-20180624

[4]

https://www.worldoil.com/news/2018/7/2/ethnic-tensions-menace-mozambique-natural-gas-boom

[5]

https://africacenter.org/spotlight/the-emergence-of-violent-extremism-in-northern-mozambique/

[6]

https://allafrica.com/stories/201806150231.html

[7]

http://bit.ly/2LQRiAA

[8]

https://thedefensepost.com/2019/01/14/mozambique-militant-islamists-kill-12-cabo-delgado/

[9]

https://www.youtube.com/watch?v=LCE6tYbEAss&feature=youtu.be&fbclid=IwAR1IpLgmU4llrY0YYDc4zbuJOdtrnFKfP8y0bscQczlHlPpY2CZd5QKod8g

[10]

https://africacenter.org/spotlight/the-emergence-of-violent-extremism-in-northern-mozambique/

[11]

https://www.dw.com/en/mozambique-shaken-after-string-of-mysterious-murders-crime-spree/a-45969236

[12]

http://www.newpoliticalgeographies.com/news/2016/2/15/another-angola-civil-society-protests-against-gas-extraction-in-mozambique

[13]

https://clubofmozambique.com/news/nyusi-in-cabo-delgado-keep-waiting-and-work-harder-by-j-hanlon/
Basic Data
NameMozambique Gas Development Project, villagers dispossessed for off shore drilling, Cabo Delgado, Mozambique
CountryMozambique
ProvinceCabo Delgado Province
SiteMilamba, Quitupo, Senga, city of Palma
Accuracy of LocationHIGH local level
Source of Conflict
Type of Conflict (1st level)Fossil Fuels and Climate Justice/Energy
Type of Conflict (2nd level)Land acquisition conflicts
Oil and gas exploration and extraction
Specific CommoditiesNatural Gas
Project Details and Actors
Project DetailsThe Italian fossil fuels company ENI was the first, in 2006, to be granted an exploration permit of the area. Since then, so many other licenses have been granted to different companies in the Rovuma Basin. For instance, the Canadian Wentworth Resources has an exploration permit in Tembo, for an oil onshore reservoir [1]. The major resettlement plans in the Cabo Delgado province have been undertaken by Anadarko and Wentworth [2]. Anadarko found the gas reserve in offshore area 1, representing about 75 trillion cubic feet of recoverable natural gas. The total area extends over 2,6 million acres. The gas offshore reserve will be exploited as part of the Mozambique Gas Development Project, (hereafter the LNG project). Several other companies are taking part of the project, through the LNG park consortium. The shareholding of the consortium is divided as following: the major shareholder is the subsidiary of the US company Anadarko, Anadarko Moçambique Area 1 Lda (26.5%); then comes the Japanese Mitsui, through its subsidiary Mitsui E&P Mozambique Area 1 Ltd. (20%); in 3rd position comes the Mozambique State owned company, Empresa Nacional de Hidrocarbonetos (with 15% of the shares); the two Indian companies ONGC Videsh Ltd. (16%) and Bharat PetroResources Ltd. (10%); the Thai company PTT Exploration & Production Plc. (8.5%); and last, the also Indian company Oil India Ltd. (4%) [3]. The construction of the onshore liquified natural gas near Palma for the LNG project occupies at least 17.000 acres (approx. 6,900 hectares) [4]. Anadarko expects to start production in 2023/24 [5], with a production capacity of $12 million tons per year [6]. The gas fields and the LNG plant will be connected through a 45km-long subsea pipeline corridor. Anadarko reports to have already invested $4 billions dollars and plans to invest up to $20 billion [7]. Friends of the Earth Mozambique recalls that natural gas is a very polluting source of energy and its use goes in a total opposite direction to face climate change. It releases Co2 and methane, the two major gases increasing the greenhouse effect. What is more, the gas drilling process itself releases more than 300 chemicals, suspected or known to cause humans’ cancer, together with more than 1.000 chemicals that are fatal to the ecosystems [8]. The Islamist attacks do not seem to be dissuading the companies from remaining in the area, they are rather making major investments in security [9]. Among the security companies in the region, there is a joint venture, Pro6, half owned by the Dubai-based Lancaster 6 Group (L6G) and ProIndicus. Pro6 claims to have contracts with Anadarko [10].

SOURCES

[1]

https://wentplc.com/operations/mozambique/

[2]

https://africacenter.org/spotlight/the-emergence-of-violent-extremism-in-northern-mozambique/

[3]

https://www.mitsui.com/jp/en/release/2015/1208360_6474.html

[4]

http://www.mzlng.com

[5]

https://allafrica.com/stories/201808100616.html

[6]

https://clubofmozambique.com/news/mozambican-organisations-welcome-resettlement-of-1500-people-in-lng-project/

[7]

https://www.news24.com/Africa/News/mozambiques-gas-fuelled-future-threatened-by-jihadists-20180624

[8]

https://www.youtube.com/watch?v=LCE6tYbEAss&feature=youtu.be&fbclid=IwAR1IpLgmU4llrY0YYDc4zbuJOdtrnFKfP8y0bscQczlHlPpY2CZd5QKod8g

[9]

https://www.news24.com/Africa/News/mozambiques-gas-fuelled-future-threatened-by-jihadists-20180624

[10]

https://allafrica.com/stories/201806150231.html
Project Area (in hectares)6,900
Level of Investment (in USD)30,000,000,000
Type of PopulationRural
Start Date2012
Company Names or State EnterprisesAnadarko Petroleum Corporation from United States of America
Oil India Ltd. from India
PTT Exploration & Production Plc (PTTEP) from Thailand
ONGC Videsh Limited from India
Bharat PetroResources Ltd. from India
Mitsui & Co., Ltd. from Japan
Mitsui E&P Mozambique Area1 Ltd. from Mozambique - Subsidiary of Mitsui that acquired a partial interest in Mozambique's Area 1
Royal Dutch Shell (Shell) from Netherlands
Relevant government actorsInstituto Nacional de Petroleo, Mozambique Defence Armed Forces, Minstry of the Interior
Environmental justice organisations and other supportersFriends of the Earth Mozambique/Justiça Ambiental ---https://ja4change.wordpress.com --- Human Rights Watch
The Conflict and the Mobilization
Intensity of Conflict (at highest level)MEDIUM (street protests, visible mobilization)
When did the mobilization beginPREVENTIVE resistance (precautionary phase)
Groups MobilizingFarmers
Indigenous groups or traditional communities
Local ejos
Women
Ethnically/racially discriminated groups
Religious groups
Fisher people
Forms of MobilizationDevelopment of alternative proposals
Involvement of national and international NGOs
Lawsuits, court cases, judicial activism
Official complaint letters and petitions
Threats to use arms
Impacts
Environmental ImpactsVisible: Food insecurity (crop damage)
Potential: Air pollution, Biodiversity loss (wildlife, agro-diversity), Fires, Global warming
Health ImpactsVisible: Exposure to unknown or uncertain complex risks (radiation, etc…), Other Health impacts
Potential: Accidents
OtherExposure to dangerous chemicals for human health and ecosystems.
Socio-economic ImpactsVisible: Displacement, Increase in violence and crime, Loss of traditional knowledge/practices/cultures, Militarization and increased police presence, Violations of human rights, Land dispossession, Loss of landscape/sense of place, Other socio-economic impacts
Potential: Specific impacts on women
OtherEthnic and religious tensions, Increase of Islamist groups, opposing gas drilling and suspected to be at the origin of civilians killings. Justiça Ambiental JA! FOE Moçambique denounced armed attacks in Maganja on January 20th 2019 (two people killed), and a journalist being illegally detained since January 5th 2019. An army battalion was present when the shooting happened but did not intervene to protect civilians.
Outcome
Project StatusUnder construction
Pathways for conflict outcome / responseCompensation
Deaths
Court decision (failure for environmental justice)
Migration/displacement
Repression
Development of AlternativesDefended the activities that provide the locals with sustainable sources of livelihood, farming, fishing, tourism. Address the youth discontent, engage with the questions related to land ownership. Need to pacify the region regarding the increase of Islamist guerillas, but still respecting human rights.
Do you consider this as a success?No
Why? Explain briefly.Compensation promises by Anadarko for people's lands dispossessions have been broken by the US company. People are actually loosing their access to sustainable sources of livelihood, fishing and farming, while being exposed to new pollution dangers related gas offshore drilling and also being threatened by the rise of Islamist guerrillas.
Sources and Materials
References

Approach to Resettlement, Mozambique LNG Official Page
[click to view]

Links

Mozambique LNG - The Mozambique Gas Development Project
[click to view]

Ethnic tensions menace Mozambique natural gas boom, February 2018
[click to view]

Mozambique sees $30 bln investment for 2018 LNG exports startup, August 2014
[click to view]

Mozambique Offshore Area 1 Project, Offshore Technology
[click to view]

Mozambique: New Gas Exploration Contracts Could Be Signed in September, August 2018
[click to view]

Selection of EPC Contractor for Initial Onshore LNG Park of the Natural Gas Development Project in Mozambique, May 2015
[click to view]

Financial Times Article
[click to view]

Mozambique: Islamist militants suspected in Cabo Delgado killings, January 2019
[click to view]

Tourists cancel visit to Mozambique’s Cabo Delgado due to instability, December 2018
[click to view]

Ataque causa três mortos e um ferido em Cabo Delgado, Dez 2018
[click to view]

Large gas field discovered off coast of Mozambique, October 2011
[click to view]

Mozambique's gas-fuelled future threatened by jihadists, June 2018
[click to view]

Mozambique: Cabo Delgado Attacks Continue, Causing Panic, June 2018
[click to view]

Nyusi in Cabo Delgado: Keep waiting and work harder, July 2018
[click to view]

210 homes destroyed in latest Cabo Delgado attacks, June 2018
[click to view]

Poverty and unemployment fuels Cabo Delgado insurgency, admits Nyusi, August 2018
[click to view]

Mozambique shaken after string of mysterious murders, crime spree
[click to view]

Beheadings in Mozambique mark extremist threat in new gas frontier, July 2018
[click to view]

Mozambique Oil & Gas: NGO slams Cabinet for lack of competitiveness in gas infrastructure, May 2017
[click to view]

Mozambique Oil & Gas: Anadarko Palma resettlement project to start later this year – Cabo Delgado governor says, September 2017
[click to view]

Palma gas resettlement project to start later this year – Cabo Delgad governor, September 2017
[click to view]

Another Angola? Civil society protests against gas extraction in Mozambique, February 2016
[click to view]

Six things you need to know about Anadarko, the worst corporation you’ve never heard of
[click to view]

Mozambican organisations welcome resettlement of 1,500 people in LNG project, March 2018
[click to view]

Mozambique’s own version of Boko Haram is tightening its deadly grip, 11 July 2018
[click to view]

Ansar al-Sunna: A New Militant Islamist Group Emerges in Mozambique, June 14, 2018
[click to view]

Gregory Pirio, Robert Pittelli, and Yussuf Adam, The Emergence of Violent Extremism in Northern Mozambique, March 25, 2018
[click to view]

Media Links

Broken Lives, Stolen Future, Youtube video
[click to view]

Mozambique killings: Govt makes headway
[click to view]

Mozambique - LNG investments and the fears of residents
[click to view]

Other Documents

Coast in Cabo Delgado Source. https://www.plataformamedia.com/en-uk/news/economy/interior/portuguese-group-to-build-aerodrome-in-mozambique-for-anadarko-petroleum-10080487.html
[click to view]

Coast in Cabo Delgado Source. https://www.dw.com/en/mozambique-shaken-after-string-of-mysterious-murders-crime-spree/a-45969236
[click to view]

Credits to REUTERS/Mike Hutchings and Source: https://timesofoman.com/article/138761
[click to view]

Meta Information
ContributorEnvJustice Team, Camila Rolando Mazzuca
Last update17/02/2019
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