The National Petroleum Institute (INP), the regulatory entity responsible for the administration and promotion of oil operations (OP), has the mission "to ensure that OPs are carried out in accordance with international laws, regulations and best practices for the benefit of society". The PIN shall carry out its tasks in accordance with the applicable legislation, ensuring that it has the prerogatives necessary for the proper exercise of its powers on the basis of exemption, technical capacity and impartiality.
By reading these documents, you will have access to crucial information on efficient resource management, compliance with regulatory standards and measures taken to mitigate risks and ensure quality. In addition to ensuring transparency and responsibility, reading the Research Audit reports and the INP is a unique opportunity to deepen your knowledge of the best practices of the sector and understand the dynamics that move our institution.
It should be noted that oil legislation provides that, in the allocation of rights for the exercise of oil operations, the State always ensures respect for national interests. It also provides that oil and gas companies must ensure the employment and technical and professional training of Mozambicans and ensure their participation in the management and oil operations. Furthermore, the government must create mechanisms and define the conditions of involvement of the national entrepreneur in oil and gas enterprises.
At present, the legal nature of the Local Content Obligations for the Oil and Gas Sector in Mozambique is mixed, i.e., they arise both from legislation and from Contract Contracts for the Grant of Research and Production (CCPP). In this model, however, there are discussions about which (and what levels of) Local Content obligations should be provided for in the Law, as well as about which should be established in the CCPP.
Regarding the Local Content Criteria, both are foreseen, especially the social rule (proprietary criterion) and the economic rule (criteria of territoriality), being the social one, the main to assess the level of Local Content in a specific good or service. This requires that the INP, in the exercise of its tasks and competences, clearly and objectively define a single and main criterion for the establishment of Local Content in order to avoid normative conflicts and facilitate compliance with the Local Content Policy (PCL). It should be noted that the economic rule (criteria of territoriality), allows foreign investments and necessarily promotes the effective development of supply in the national territory.
It is in the context of regulation for the benefit of Mozambican society that, in carrying out its tasks, the INP must:
(i) Regulation of obligations regarding training, training, employment of national labour and knowledge transfer in the Oil Sector;
(ii) Ensuring competitive and isonomic conditions for business participation in the oil industry; and
(iii) To advise oil and gas companies on compliance with obligations under national participation in order to maximise the economic benefits generated.
Under the Law, the INP, under the condition of Regulatory Entity responsible for the administration and promotion of oil operations, under the supervision of the Ministry that oversees the oil and gas area, responsible for guidelines for public and private sector participation in research, exploration of petroleum products and their derivatives, can implement actions, either through CCPP, issuing regulations and/or internal opinions.
In this context, it is under way and at a very advanced stage, and socialisation has already been carried out with a satisfactory response, with the various stakeholders including the Concessionaires, to develop regulatory procedures for:
Oil Law (21/2014).
Oil Operations Regulation (34/2015).
Decree 48/2018 – Change articles 4 and 55 of ROP.
Ministerial Diploma 55/2024 of 5 July.
Decree 63/2011 – Contraction of Work Hand.
Contracts (PSA/PPA/EPCC).
General Regulation (All basins)
The Acquisition of Goods and Provision of Services is provided for in article 41 of the Oil Law, in conjunction with article 55 of the Oil Operations Regulation amended by Decree No 48/2018 of 6 August.
Special Regulations (Areas 1 and 4)
Decree No 2/2014 of 2 December (Decree Law) establishes the legal and contractual arrangements applicable to Rovuma Basin Projects, as provided for in Article 2(1).
The procedures for acquiring goods and services are provided for in Article 10 of the Decree-Law.
Publication of the notice or invitation.
Request for information from companies interested in providing goods/services.
Technique | Local Content | Commercial
Contract Negotiation and Celebration.
Implementation of the Contract
Nationals
The recruitment of personnel for oil exploration companies is published in the most popular newspapers in the country, or via radio, television and Internet.
In the pursuit of oil operations, each concessionaire must employ national citizens with appropriate qualifications at all levels of its organisation, such as subcontractors or promote subcontractors to employ national citizens.
Foreigners
The hiring of citizens of foreign nationality in the Mine Oil sector is governed by Decree-Law 63/2011 of 7 December.
The concessionaire shall contribute to the training of national technicians in accordance with the terms of the concession contract
Following the 2nd open competition for the granting of areas for the research and production of hydrocarbons, the companies Anadarko Mozambique Area 1 and the National Hydrocarbon Company were awarded Area 1 in offshore environment of the Rovuma Basin. The area is located in the northern part of Cabo Delgado Province, in shallow to very deep waters. The Hydrocarbon Research and Production Areas Grant Agreement (CCPP) was signed on 20 December 2006 and is effective as of 1 February 2007.
Median estimate of 43 tcf (cubic foot trillions) of gas.
4 Transzonal Reservoirs:
Median estimate of 3.4 (cubic foot trillions) Tcf of natural gas.
Median estimate of 8.4 Tcf (cubulated foot trillions) of natural gas
The Paleocene Reservoirs.
Tigris Shark Discovery Area (1254 km2), has 3 reservoirs of the Cretaceous (K1,K2 and K3), the K2 being the best in Orca and Shark-Tigre and has a median estimate of 0.323 Tcf (cubic foot trillions) of natural gas.
The complete technical evaluation of the potential of the Cretaceous in Area 1, between the Areas of Discovery Tubarão Tigre and Orca, determined that it contains small, discontinuous and low quality reservoirs, and this would probably present significant challenges in the supply of trade amounts of gas. Of the three reservoirs of Cretaceous (K1,K2 and K3) evaluated, the best is K2 in Orca and Shark-Tiger that has an average resource of 0.323 Tcf (cubic foot trillions) of natural gas.
This discovery was made in Area 1 by Anadarko in 2013 through borehole Orca-1, whose reservoir is the age of the Middle Paleocene, was subsequently evaluated by the holes Manta-1, Orca-2, Orca-3 and Orca-4.
The discovery is located about 10 km from the coast line, 250 km from the city of Pemba. This reservoir is of Middle Paleocene age and is not shared. The average estimate of resources is about 8.4 Tcf (cubulated foot trillions) of natural gas in situ, according to estimates submitted by Total.
The reservoir in the Orca discovery lies at depths ranging from 4000 to 5000m below the mid sea level, and the water column from about 600m to 1200m. The extension is about 30 km.
This discovery was made by Anadarko in January 2011 through the Jaw-1 hole and evaluated by the Shark-2 hole (negative) in 2013. The discovery is located about 25 km from the coast line, 50 Km of the Northeast of the district of Mocímboa da Praia and 200 Km of the Northeast of Pemba City.
The reservoir is completely in Area 1. The average estimate of resources is about 3.4 tcf (cubic foot trillions) of gas in situ.
The reservoir is at a depth of 3500 to 4000 metres below the average sea level. The water column ranges from 800 to 1200 meters. The extent of the Shark discovery is about 20 km east-oriented.
