Imlach's Sweaty Hippie Funk Collection, adventure bikes, rusty rats, cruisers and other alt bastardisations of bicyclery

It is not a Derailleur, it is the tensioner, that has internal hub gears, probably 3. Brake (only one) has been upgraded and the seat post is Titanium too and some other parts changed.

It will look much better in full turquoise and black peripherals ....
 
It's a 2 speed. And ‘the thing’ is both a tensioner and half of the the derailleur ( the other bit being on the chainstay) due to the jockey wheels being able to move side to side on their pivots. It can also be used with a sturmey archer 3 speed hub, resulting in a 6 speed system.
 
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