Africa Business In The News

Mozambique beheadings jeopardise $30 billion oil investment

JOHANNESBURG, June 7 – Increasingly regular and bloody attacks by suspected Islamist militants are threatening Mozambique’s gas rich north and could undermine threaten a potential $30 billion in investment, Bloomberg reported.

Attackers hacked seven people to death with machetes and torched dozens of homes on Tuesday in the north of the country, a region that has suffered a spate of similar attacks in recent weeks.

Cabo Delgado province, which is expected to become the centre of a nascent natural gas industry after several promising discoveries, has seen a number of deadly assaults on both security forces and civilians since October.

Late last month a group of suspected Islamist militants also beheaded 10 villagers in the north, ratcheting up concerns that spreading attacks in the remote region could threaten a potential $30 billion in investment.

“Anadarko Petroleum Corp. and Eni SpA, which are developing separate offshore gas projects near the Tanzanian border, say they haven’t been affected by the violence in Cabo Delgado province,” reported Bloomberg.

However, London-listed explorer Wentworth Resources Ltd. said it has not been able to gain access to its onshore licences near the town of Mocimboa da Praia for safety concerns due to the attacks.

According to analysts the threat posed by Islamic extremists is not going to go away but will only get worse.

Leave a Reply

Your email address will not be published. Required fields are marked *