Gas and Petroleum Law Mozambique 2014 Market Briefing (Johannesburg)

The passage of a new Gas and Petroleum Law and launch of the country’s 5^thlicensing round for areas south of the Rovuma basin and Mozambique’s Ultra Deep Marine Water, is imminent.

LNG market development in Mozambique is still in a highly speculative state as the Government of Mozambique grapples with national development scenarios, including updating archaic policy and fiscal laws. The Petroleum Law and petroleum fiscal terms are thus undergoing review and will, together with other factors, establish the concepts for a Facilities Concession Contract for LNG projects

In 2012, Mozambique published a revised draft of a petroleum law intended to replace the Petroleum Law 2001. This new law was approved by the government in April 2013 and was submitted to the Council of Ministers for ratification. Instituto Nacional de Petroleo (INP) had, until recently, indicated that the new petroleum law would be passed by year-end 2013. Recent indications are that the new petroleum law will now receive parliamentary approval in November 2014. The new petroleum law will come into effect 30 days after its publication in the Government Gazette: the “Boletim da Republica.”