Further Africa: Understanding Mozambique’s New Oil and Gas Regime

Mozambique recently enacted Law No. 21/2014 (Hydrocarbons Law) — its new oil and gas legal regime — which aims to provide legal stability for international investors seeking to develop the country’s recently proven reserves of 200 trillion cubic feet of natural gas. This new law and the Hydrocarbons Tax Law No. 27/2014 determine the general rule for all oil and gas operations in the country. Other laws could be enacted to determine specific regimes for any exploration areas, such as the Decree-Law No. 2/2014 that stipulates the Rovuma Basin regime.

The new Law No. 21/2014 is not regulated yet, but in essence it introduces some changes to the old Hydrocarbons Law (Law No. 03/2001) maintaining its major principles and aspects. Included in the scope of the new law is the concession of rights to perform oil and gas operations in Mozambique (and beyond its borders), including: oil and gas operations, transportation and any related infrastructure. The new law does not cover refining processes, industrial use, distribution and trading of oil and gas products.

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