The Oil for Development programme in Mozambique
With massive discoveries in recent years, Mozambique’s natural gas reserves are estimated at around 100 trillion cubic feet, placing the country as the third-largest natural gas reserve holder in Africa. Operators are currently planning a commercial liquefied natural gas plant in northern Mozambique.
Norway and Mozambique have cooperated within the OfD Programme since 2005. In 2014, a new four-year programme agreement was signed between the two countries.
From 2015, the cooperation between the Mozambican and Norwegian tax authorities was incorporated into the OfD Progamme.
Preparations for a strengthened environmental component began at the end of 2016. A revenue component is also under planning.
Key achievements 2016
Enhanced legal and regulatory framework:
- Petroleum Operations Regulations, under the Amended Petroleum Law, were approved by parliament in January 2016. The regulations, along with model Exploration and Production Concession Contracts, were finalized by the National Petroleum Institute (INP), with support from a Norwegian legal consultancy team.
- Model contracts for multi-client seismic data collection were developed by INP, to be completed in 2017.
Increased institutional capacity:
- Civil servants from INP received mentoring from a geologist from the Norwegian Petroleum Directorate through on-the-job training that lasted several months. The mentoring was part of a rotating mentoring programme, and resulted – among other things – in INP’s resource database being updated with production data.
- The Development Plan for the Coral South Floating Liquefied Natural Gas project passed parliament in June. INP evaluated the Plan with support from the Norwegian Petroleum Directorate and the Petroleum Safety Authority Norway.
- Staff from the National Petroleum Institute, together with a few representatives from the environmental authorities, enhanced their knowledge of compliance monitoring on offshore installations through training provided by Stavanger Offshore Technical College.
Increased transparency and accountability:
- INP conducted a full audit activity of the Pande / Temane gas metering station after employees received training in fiscal metering from the Norwegian Petroleum Directorate.
- Civil Society organizations have enabled local communities in the affected areas to voice their concern and have contributed to increased dialogue with government and companies.