News and updates from the continent

Mozambique passes revised petroleum law

Mozambique passes revised petroleum law

Aug 19, 2014

The South African Broadcasting Corporation (SABC) has reported that the Mozambique government has passed an amended petroleum law that will allow government to issue a new gas and oil exploration licenses, and also requires investors to partner with the state oil firm.

The revised law will come into effect by the end of the year and bidding for concessions would be held in the coming months. Reports say Mozambique hopes revenues from its large natural gas deposits and its fledgling coal mining and export industry will help it emerge from years of poverty and dependence on foreign donors.

US oil major Anadarko Petroleum Corp and Italy Eni is developing multi-billion-dollar liquefied natural gas export projects in Mozambique’s northern offshore Rovuma basin. While not disclosing names, the president of the National Petroleum Institute said interest from potential investors is high.

The legislation approved by parliament also included authorisation for the government to create a special regime for the Liquefied Natural Gas (LNG) processing chain in Rovuma Basin  where Anadarko and Eni are operating.

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