The Oil for Development programme in Mozambique

Mozambique is the third-largest natural gas reserve holder in Africa.
Operators are currently planning both onshore and floating liquefied natural gas installations in northern Mozambique. Production is expected to commence in 2021.
 
Norway has provided petroleum-related support to Mozambique for more than thirty years. Since 2005 there has been an OfD programme in the country, and in 2014, Mozambique and Norway signed a four-year programme agreement for the resource and safety components.
 
The programme has been extended while a new, holistic programme is being planned, comprising resource, safety, environmental and revenue components.
 
 

Key achievements of programme activities

Enhanced legal and regulatory framework

  • The Petroleum Safety Authority Norway (PSA) assisted the National Petroleum Institute (INP) in following up the regulations associated with allocation of licences.

  • Contractual issues between the new fifth round concessionaires and the Government of Mozambique were addressed and aligned and five Exploration and Production Concession Contracts (EPCCs) were signed. Legal advisors financed through the OfD programme assisted INP in revising the old EPCC contract. The new exploration and production concession contract will serve as a model for future licensing.

  • The National Petroleum Institute (INP) completed standard contracts for multi-client seismic data collections with support from the Norwegian Petroleum Directorate’s consultants.
Increased institutional capacity

  • INP improved its capacity to perform audits in the process safety areas through a two-step training programme provided by PSA.
  • INP conducted a supervisory activity (audit) of management of safety risks in the operation of Sasol Central Process Facilities (CPF) in Temane, supported by PSA. Core audit issues were process hazard analyses, change management, maintenance of safety-critical equipment and compliance audits.

  • PSA assisted INP in its supervisory activity (audit) of Sasol Satellite Operations – operations and maintenance of the Mozambique-Secunda Pipeline (MSP) in Maputo and Germiston. The activity was based on previous audits of the pipeline operations at the CPF in Temane, at the Sasol offices in Maputo and in Germiston.

  • The OfD programme supported development of INP’s capacity to exercise its regulatory mandate, through shoulder-to-shoulder training and through formal training courses.

  • The National Maritime Authority (INAMAR) developed its capacity on oil spill response through a training programme provided by the NCA, observing a full-scale oil spill exercise in Norway. NCA also provided training material to INAMAR for local exercises.

  • A comprehensive needs assessment of key ministries and government agencies with respect to environmental management in the oil and gas sector was carried out through UNEP.

  • Authorities in Mozambique have increased their understanding of environmental challenges in the oil and gas sector through training courses carried out by UNEP.
Increased transparency and accountability

  • Norwegian People’s Aid’s partner the Panos Institute supported the local community of Maimelane in petitioning for the gas company Sasol and the local government to expand the gas supply for domestic use in the community. Both the company and local government have pledged to increase gas distribution with new gas connections to households. This possibility has been embraced by local communities as a substantial contribution to improving living conditions.

  • The OfD programme supported the Civic Coalition for Extractive Industry in their dialogue with the operators concerning compensation arrangements for communities affected by relocation due to onshore petroleum installations.

 

Published 03.06.2014
Last updated 28.06.2019