Mozambique’s defence ministry has blamed Islamist militants for carrying out Wednesday’s attack in the northern town of Palma, close to a multi-billion dollar gas project run by French oil giant Total.
The ministry’s spokesperson Omar Saranga said they are yet to know of any casualties from the attack because the area is unreachable by telephone.
He said the attackers forced residents to abandon the village and seek refuge in a forest.
Local news outlet Carta de Mocambique reports that the attackers targeted banks, shops, a hotel and the barracks of the riot police.
It says the shooting ended in the early hours of Thursday when government troops regained control of the town.
The attack came hours after Total announced the resumption of work at the gas project located on the Afungi peninsula. Construction work was halted at the beginning of the year after an attack at a nearby town.
A three-year Islamist insurgency in the Cabo Delgado province has left over 2,000 people dead and about 600,000 others displaced, according to official figures.