New oil prospecting concessions granted in Mozambique only after change in the law

20 March 2013

The next tender for oil and gas prospecting and production in Mozambique will only be launched after approval of the Oil Law review and its regulation by the parliament and government, the country’s Natural Resources Minister said in Maputo.

According to daily newspaper Notícias Abdul Razak noted that interest in Mozambique from the international oil industry remained “quite strong” and that several companies were waiting for new public tenders to be launched to bid for new prospecting areas.

“We hope that by the end of this year, following the review and update to current oil legislation, a new tender will be announced that will offer new opportunities for oil and gas prospecting and production in Mozambique,” said Razak.

At the recent international gas conference in Mozambique, held last week in the country’s capital, the deputy minister noted there were some sedimentary basins that had yet to be explored, such as lake Nyassa.

Although this basin has already been the focus of a dispute between Mozambique’s neighbours Tanzania and Malawi, on the Mozambican side there has so far been no concession of areas for oil and gas research as the government’s priority has been the Rovuma basin.

The Oil Law review (Law 3/2001) is intended to introduce regulations on natural gas liquefaction as an oil operation, as well as non-conventional natural gas exploration, such as the methane associated to coal, which have taken on an importance that they did not previously have. (macauhub)