A new law for the oil and gas sector in Mozambique has recently been approved. The new law reviews the rights allocation arrangements, strengthens the legal framework, and protects national interests and the government’s powers, while safeguarding existing concession contracts. Provisions have been introduced to foster greater transparency, such as an obligation to publish the terms of reference of concession contracts, the results of oil sector activities, payments made to the state and social and corporate responsibility requirements.
The tax regime will be the subject of a separate law that should be approved before the elections taking place on 15 October 2014. The Parliament has also authorised the Government to draw up an ad hoc decree law for the liquefied natural gas projects in Areas 1 and 4 of the Rovuma basin.
Lastly, the Government has approved the Gas Master Plan, which includes the outlook for domestic consumption for the next 10 years, the price-setting policy for domestic gas, an attempt to classify priority projects for 4 industrial sectors (fuel, basic chemical products, electricity, raw materials) and guidance criteria for the allocation of licences and permits. Source: infoMercatiesteri.