As we enter the second half of 2025, Mozambique is consolidating its position as a regional leader in oil and gas. The current landscape is marked by strategic agreements, robust financing, and a clear focus on developing energy infrastructure, all in collaboration with both national and international partners.
State-owned ENH (Empresa Nacional de Hidrocarbonetos) has assumed full control of the ENH-KOGAS joint venture, acquiring the South Korean company KOGAS’s stake for approximately US$10.9 million, to be paid between September 2025 and January 2026. This move allows ENH to strengthen its role in gas distribution, aiming to expand domestic access, reduce costs, and ensure priority for Mozambicans before exporting. The revised agreement with KOGAS also provides for technical cooperation, local workforce training, and support for the energy transition.
According to Reuters, offshore, the government approved the development plan for the second FLNG platform, Coral North, operated by Eni. This project, valued at approximately US$7.2 billion, is expected to produce 3.55 million tons of LNG per year and is scheduled to begin operations in the second half of 2028, with the Final Investment Decision (FID) planned for 2026. Meanwhile, energy giant TotalEnergies is seeking to lift the “force majeure” clause on the onshore Mozambique LNG megaproject (US$20 billion), affected by instability in Cabo Delgado, with construction expected to resume by mid-2025.
On the legal front, the new Petroleum Law is under discussion, aligned with the Five-Year Plan and long-term strategies. Key proposed measures include a minimum 40% state participation in concessions, strengthened local content obligations, regulation of carbon capture and storage (CCS), and community compensation mechanisms, according to PLMJ Transformative Legal Experts.
During the semester, Mozambique also signed strategically important memoranda of understanding. At FACIM, agreements were signed for the construction of the country’s first modular refinery and a US$1.5 billion pipeline to export petroleum products to Zambia, a project expected to reduce imports and boost domestic GDP.
It is also worth noting that since April, state company GALP has selected ADNOC (United Arab Emirates) as a new partner in parts of the Area 4 consortium (Coral South and North and Rovuma LNG), acquiring a 10% stake.
Financially, the Sovereign Wealth Fund of Mozambique (FSM) has already received over US$210 million in gas exploration revenues, which, according to the 2024 law, will be allocated 60% to the State Budget and 40% to the fund, with a review of revenue sharing planned after 15 years.
Overall, in this semester, Mozambique is shaping a robust energy landscape, combining the expansion of offshore projects (FLNG), strengthened regulation, strategic investments such as the refinery and pipeline, and institutional and financial reinforcement through the FSM. All these efforts align with the national strategy to transform natural resources into a driver of sustainable development and social inclusion, with active participation from ENH, public-private partnerships, and strengthened governance.
Source: Africa Oil Gas Report
