Resource information
The Petroleum Law No. 3/2001 of 21 February 2001 (the “Petroleum Law”) is intended to provide a sound and sustainable legal environment for the development of the oil and gas industry in Mozambique in a manner that will benefit Mozambicans. Although there is no significant commercial production from Mozambique’s fields yet, the substantial oil and gas discoveries will very likely represent the most significant opportunity for the country to develop its economy and bring prosperity to its citizens. The Petroleum Law and the Regulation Decree No. 24/2004 of 20 August 2004 that stems from it (“the Decree”) address several key issues and are in many respects well drafted.
However, this body of legislation needs to be robust enough to support the development of the oil and gas industry over several decades. Indeed, the complexity of the petroleum industry requires that applicable legislation regulating it be extensive, comprehensive and unambiguous, while at the same time be clear, practicable and self-executing. These comments are provided to the government of Mozambique in good faith and in the anticipation that Mozambique will revise its current legislation accordingly. The purpose of this comment letter is to strengthen the development of a balanced legislative and regulatory framework that permits economic production of oil and natural gas in a manner that benefits Mozambique and its citizens, without creating undue risks and hazards for current and future generations of Mozambicans. Indeed, “Petroleum resources are assets whose proper exploitation can contribute significantly to national development” (Preamble of the Petroleum Law). Such “proper exploitation” entails balancing present returns against overall benefits for present and future generations of Mozambicans.
