ANNOUNCEMENT 14 Aug 2014

In August 2014, the government of Mozambique announced a change in the required local inputs to serve domestic customers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Shearman and Sterling, 19 September 2014, 'Mozambique's New Petroleum Legislation: Are Investors Ready to Hit the Gas?', Client Publication: http://bit.ly/1qpgHOG

Clifford Chance, 15 October 2014, 'New Petroleum Law: The Future of Oil & Gas in Mozambique', Briefing Note: http://bit.ly/1WRmAqW


Inception date: 18 Aug 2014 | Removal date: open ended
Still in force

Local sourcing

On 14 August 2014, the Mozambican government approved the new Petroleum Law (Law no. 21/2014) which replaces the previous Petroleum Law (Law No. 3/2001). The new law enters into force on 18 August 2014 and includes various stipulations affecting the international trade flow.
 
Local content requirements
Among the trade restrictive policies are various national content obligations:

  • general promotion of Mozambican businesses in the oil and gas sector
  • oil and gas companies must be listed on the Mozambican Stock Exchange
  • Preferential treatment of Mozambican individuals or entities in procurement of goods and services, i.e., in case the local good is not more expensive than 10% of the imported good. Previously, this only applied to operators, not it also applies to holders of all types of rights to conduct petroleum operations.
  • foreign service providers in Mozambique are required to associate with national entities
  • the government shall promote a progressive increase of its participation in all oil and gas ventures
  • the government reserves its right to participate in the operations of any legal entity of the oil and gas sector
  • at least 25% of the oil and gas production has to be directed at domestic market consumption
  • goods or services exceeding a certain amount are subject to public tender

 
Set of new legal frameworks
The new Petroleum Law belongs to a set of new commodity-related regulations, such as the Petroleum Tax Law, the Mining Tax Law and the Mining Law. For the latter, please consult measure no. 10022 under Related Measures.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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