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The Mozambican parliament, the Assembly of the Republic, has passed the first reading of a bill amending the country's law on petroleum and gas. The bill details that all petroleum and gas resources are State property. Further that the State has the right to participate in all hydrocarbon operations at any phase and all data under any of the concession contracts is State property.

All concession contracts are open to public tender and successful bidders must give preference to local products and services where possible and if not, imported products and services which should not be more than 10% more expensive.

Amongst other requirements exploration companies must also report any discovery in their concession area to the government within 24 hours, submit plans for development, ensure minimal environmental damage, and must agree to use some of the revenue generated from production for the upliftment of local communities in which activity takes place.


Last month a Mining Law was passed by the Assembly.