[2020-03-19] Companies in Mozambique benefit from natural gas exploration in the Rovuma basin

Source: Macauhub

The international groups that are involved in the project of extraction of natural gas in the Area 1 block of the Rovuma basin, in the Mozambican province of Cabo Delgado, have already spent approximately US$500 million on the acquisition of goods and services from companies in Mozambique, the president of the National Oil Institute (INP) said recently.

The figure is part of the US$2.5 billion agreed between the government and the concessionaires led by French oil company Total, as a reserve for expenses with national companies which provide services or trade goods for the Area 1 project.

The President of the INP, Carlos Zacharias, said recently in Maputo there was a growing number of Mozambican companies interested in taking part in hydrocarbon survey and exploration projects in the country.

“We have a database where 1,400 companies have registered, of which 427 are registered in Mozambique and 307 owned by Mozambicans, which is encouraging in this effort to boost the national economy,” he said, quoted by the local press.

One of the main constraints that Mozambican companies face to benefit from opportunities in gas exploration projects is related to the fact that the majority does not meet the requirements demanded by the oil companies to provide goods and services.

To counteract this situation, the Office of Small and Medium-sized Enterprises, in partnership with the multinational companies that operate in Mozambique, has launched a project for company certification, so that they can benefit from the opportunities created.

The private sector has also called for the approval of a law of national content that establishes a stake within the shareholder structure of major projects for Mozambican SMEs.