Mozambique

Mozambique_flagg
09.09.2010
   

Institutional support NPD - INP

 

Cooperating institution
National Petroleum Institute (INP)

Goals and objectives
Strengthen the administration of petroleum resources to enhance economic development and welfare in Mozambique.

Project period
2006–2010

Total budget
NOK 41 million

Programme
The programme consists of the following main components:

  • Upstream petroleum legal and contractual framework
  • Policy and strategy
  • Monitoring and control
  • Promotion of exploration acreage
  • Negotiations and licensing
  • Assessment of petroleum resources
  • Management of petroleum data
  • Administration, human resources and financing

Contact
Oil for Development:
Mr. John Tore Vatnar, jtv@norad.no

Cooperating institutions in Norway
Norwegian Petroleum Directorate (NPD) (implementing institution)
Petroleum Safety Authority Norway (PSA)
Petrad

 

 Map

 

Country facts

Map
Official Name
Republic of Mozambique Capital Maputo

Chief of state
President Armando Guebuza

Head of Government
Prime Minister Aires Bonifacio Ali (since January 2010)

Population
21 669 278 (2009 est.)

Petroleum sector, key figures
Annual oil production: No oil production (2008)
Annual gas production: 3.3 bill m3 (2008)

Organization of the sector

Ministry Of Mineral Resources (MIREM)

National Petroleum Institute (INP)
– Responsible for promotion, licensing and supervision of upstream petroleum operations.

Empresa Nacional de Hidrocarbonetos de Moçambique (ENH)
National Oil Company with two daughter companies:
– Companhia Moçambicana de Hidrocarbonetos
– manages Mozambican ownership in Pande - Temane Gas Project
– Companhia Moçambicana de Gasoducto
– manages Mozambican ownership in the Natural Gas Pipeline from Pande - Temane


Brief history of the project


The petroleum related development cooperation between Norway and Mozambique started in 1983. When the National Petroleum Institute (Instituto Nacional do Petroleo, INP ) was formed in 2005 it became the main partner on the Mozambican side for the Norwegian cooperation. The cooperation involves personnel from the NP D and other Norwegian institutions, as well as international and local consultants.


Activities in 2009


Legal framework

The need for improvements in the Petroleum Law, regulations and standard contract was identified, but the actual work was delayed. Drafting of the new regulation for impact assessments was also delayed. Regulation for licensing of petroleum installations was approved in March 2009.

Policy/strategy
The new licensing regulation was approved by the Council of Ministers in March 2009. The commission on the Continental Shelf Extension led by the Institute of Maritime and Border Affairs submitted a preliminary claim to United Nations Convention on the Law of the Sea (UNCLOS) in May. The INP has been instrumental in doing the technical work and in financing the collection of data under this programme. One meeting in the bilateral gas trade commission with South Africa was organized, focusing on the Petroline pipeline project from Maputo harbour to South Africa.

The scenario analysis work from 2006 was updated and input from this work was used in the process of making a national training policy.

Monitoring and control of petroleum activities
Monitoring of seismic data collection and drilling operations was carried out, in addition to supervision of licensing activities. In March, the Government approved the Development Plan for the extension of the gas production from Pande/Temane from 120 to 163 MJ /year. The approval is subject to several requirements; one being that Sasol has to make plans for separate LPG extraction.

Promotion
The INP, in cooperation with PG S (Petroleum Geo Services), prepared the 4th licensing round. The INP was represented at the East Africa Petroleum Conference in Mombasa, as well as other conferences.

Negotiation and licensing
The third licensing round was assisted by Simonsen law firm and negotiations continued in 2009. Resource analysis A bid for seismic data collection in the southern part of the Rovuma basin was sent out. PG S assisted in resource assessment for the 4th round blocks.

Transcription from old to new tapes is nearly finished, and large volumes of new seismic data have been received from the companies. The new core storage is now under construction.

Institutional strengthening
Technical experts and support staff were recruited. Training programmes were performed, including master programmes for two engineers and accounting and management training for administrative staff. A one-week seminar on petroleum taxation was carried out in Norway for the Ministry of Finance and the Autoridad Tributaria. Support was also provided to Empresa Nacional de Hidrocarbonetos (EN H) on organizational development and administrative issues.


Key achievements in 2009


The 2009 achievements were hampered by the national election process.

The INP’s regulating capacity was strengthened through the implementation of management systems, as well as through competence development.

The INP participated timely and effectively in the work concerning the UNCLOS submission.

The support provided to the ENH led to a new strategy and improved procedures.

Mozambique. Photo: John Tore Vatnar


Mozambique. Photo: John Tore Vatnar