British Petroleum (BP) has suspended supplying fuel to the Mozambican Airlines Linhas Aéreas de Moçambique (LAM), VOA Radio confirmed.
The suspension, VOA Radio explained, was effected last month due to the $3 million LAM owes BP.
It added that the move affected the entire LAM fleet.
Oil and gas
BP is one of the world’s leading integrated oil and gas companies.
It provides fuel for transportation, energy for heat and light, lubricants and the petrochemical products.
The British firm began operating in Mozambique in the 1920s, in partnership with Shell, under the management of BP.
Its assets
In 1978, Shell exited Mozambique and BP took over its assets and customers.
Since then, BP has continued to operate with no external shareholding and was currently the biggest foreign oil company in Mozambique.
Apart from domestic services, LAM flies to regional destinations such as Angola, Namibia, Kenya, South Africa and Tanzania.
Mozambican Airlines has since 2011 been banned from the European airspace due to its failure to meet the international security standards.
Similar action
Last month, the British government said it had suspended financial aid to Mozambique over an alleged “serious breach of trust” relating to undisclosed debts.
The announcement followed similar action by the International Monetary Fund (IMF) and the World Bank.
The IMF said in a statement last week that Mozambican authorities had admitted failure to disclose external debt in excess of $1 billion.
