Thursday, July 18, 2024
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Analysis of extractive sector contracts and concessions

The exploitation of natural resources, especially hydrocarbons and minerals in the soil and subsoil, has played a crucial role in global economic development. Obtaining concessions to exploit these resources has become an essential element for the sustainability and growth of industrial activities. In the economic context, the granting of exploitation rights represents not only a regulatory aspect, but also a fundamental mechanism for balancing progress with the preservation of natural resources.
This article seeks to present and comprehensively analyze the concessions granted to companies to exploit hydrocarbons and minerals, investigating their relevance in the economic panorama.

Contracts in the hydrocarbon sector

  1. MozGas UK
  2. Mazenga Block
  3. Búzi Hidrocarbns
  4. Bloco Mazenga
  5. Sasol Petroleum Mozambique Lda.
  6. PT5-C area of the Mozambique Basin
  7. ExxonMobil – area A5B of the Mozambique Basin
  8. ExxonMobil – Z5D of the Mozambique Basin
  9. ExxonMobil – Z5C of the Mozambique Basin
  10. ENI Mozambico S.P.A
  11. A5A Mozambique Basin

Development

  1. Total E&P Mozambique Ltd – Area 1 of the Rovuma Basin
  2. Sasol Petroleum Mozambique Lda. – Pande and Temane Block

Production

  1. Mozambique Rovuma Venture (MRV) – Area 4 of the Rovuma Basin
  2. Sasol Petroleum Temane – Pande and Temane fields

Transport

  1. ROMPCO -Temane (Moç.) to Secunda (RAS) 86,5km

2.Matola Gas Company – Ressano Garcia to Matola

In 2022, the gas sector in Mozambique witnessed significant milestones, the highlight being the successful launch of the Coral Sul project, led by MRV, in October. This project, in partnership with Sasol Petroleum Temane, elevated both companies as essential pillars in the country’s gas production. In addition, a notable development occurred with the transfer of 15% of the participating interest in the Mozambique Basin Area 5 contract from Sasol Petroleum Mozambique to ENI Mozambique SPA.

concessions in the solid minerals sector in Mozambique


The 2022 Report and Opinion of the General Council of Companies (RPCGE) reveals significant data on the solid minerals sector in Mozambique up to December 31 of the same year. According to INAMI’s cadastre services, 342 mining concessions in force in the country have been confirmed. However, a discrepancy is pointed out in Table V7, Mining Contracts Signed, where AT indicates the existence of 9 contracts instead of the 10 initially documented.
In the field of coal mining, which prevails in the solid minerals sector in Mozambique, despite the 20 areas allocated to concessionaires, only three operators – Minas de Benga, Lda., JSPL Mozambique Minas, Lda. and Vulcan Mozambique, SA (successor to Vale Moçambique, SA) – have actually produced. Of the 20 concessions, 19 are active, while one, belonging to Kingho Investment Company, Lda. has been revoked.
The RPCGE highlights the award of 308 licenses in 2022, covering various types, with commercialization licenses being the most prominent, accounting for 49% of the total. The realization rate in relation to requests was 64%, remaining consistent with the last 5 years. Over the same period, it can be seen that marketing licenses showed the highest level of completion, with an average of 94%. On the other hand, the lowest percentages were recorded in the granting of mining permits, with 26%, and mining concessions, with 37% on average.

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