Oil and gas companies operating in Mozambique must communicate any discovery to the authorities within 24 hours, under the terms of a proposed change to the Oil Law, of 21 February 2001, a government spokesman said Tuesday in Maputo.
At the end of the council of Ministers, spokesman and deputy Justice Minister, Alberto Nkutumula, said that the proposed law included clauses on environmental pollution, local development and rationalisation of oil resources, along with others that make procedures for the sector clearer, with a view to attracting investors.
Nkutumula noted that in future the companies that are prospecting for oil and gas will be required to pay compensation for damage caused by the activity, as well as being required to comply with environmental standards.
According to Mozambican news agency AIM, the spokesman said that the proposed change to the law outlines that oil operations will require a concession contract granted via a public tender or through direct negotiation.
The proposal, which has yet to be approved by parliament, also outlines that a percentage of “revenues resulting from oil operations in Mozambique will go to the communities where the oil operations are located.” (macauhub)