Under the proposal, which is to be submitted to Mozambique’s parliament, the Assembly of the Republic, petroleum companies will need to inform the government within 24 hours of any hydrocarbon discovery.
Briefing reporters on Tuesday after a meeting of the Council of Ministers (Cabinet), the government spokesperson, Deputy Justice Minister Alberto Nkutumula, explained that the proposed changes also include clauses relating to environmental pollution, local development and the rationalisation of petroleum resources. Other new clauses will clarify procedures to encourage further investment in the sector.
Nkutumula said that under the proposed petroleum legislation companies would be responsible for compensating victims of their actions, adding “the petroleum companies should always carry out their activities in compliance with environmental norms”.
He stated that under the changes the petroleum companies will be obliged to give a percentage of the revenue from their operations in Mozambique to a fund to be spent on local communities. The exact percentage has not yet been decided.
The revision of the law is necessary due to the sudden growth in the hydrocarbon industry over the last few years. Up until now many of these features were incorporated into individual concession contracts. However, Nkutumula stated “these revisions are intended to make provision within the law for all government competences in relation to hydrocarbon operations”.
Post published in: Africa News