Mozambique has approved a decree that guarantees the efficient management of revenues from oil and natural gas exploration. This regulation establishes a legal framework for accountability and good governance in the country’s natural resources sector.

The Mozambique Sovereign Fund, created by Law 1/2024 of January 9, aims to ensure that the proceeds from non-renewable resources are managed responsibly, promoting sustainable socio-economic development and generating savings for future generations.

The approved decree stands out for establishing fundamental principles of transparency, accountability, legality, independence, prudence and risk management. It also creates the Supervisory Committee, an independent body made up of civil society representatives, responsible for controlling and monitoring all operations related to revenues, deposits, resource allocation and management of the Sovereign Fund.

Another highlight of the decree is the creation of the Investment Advisory Board, made up of financial experts and independent members of the government, which will act as a consultative body, assessing investment opportunities.

The regulation also establishes the obligation for independent internal and external audits of the Fund’s accounts and operations. It also provides for the regular publication of detailed reports, including information on investments, revenues, profitability and risk levels.

With these measures, Mozambique is reinforcing its commitment to transparency and good governance in the management of its natural resources, ensuring that revenues from oil and gas exploration are used responsibly and sustainably for the benefit of present and future generations.

The Organization of the Petroleum Exporting Countries (OPEC) warns that there will be growth in global oil demand this year, estimating an increase of 2.2% over the previous year. Based on an optimistic expectation about the development of the world economy, OPEC predicts that world oil consumption will reach an average of 104.46 million barrels per day in 2024, an increase of 2.5 million or 2.2% compared to 2023.

According to OPEC’s monthly report, the figures remain the same as those estimated a month ago, although the organization’s experts have slightly increased their expectation of world economic growth this year, to 2.8%.

The organization is counting on growth in China, India and other Asian countries to maintain global economic dynamics, offsetting the relatively low growth rates in the industrialized OECD countries.

The prospect of positive and stable dynamics in the main economies is supported by the expectation of a sustained reduction in global inflation until 2024 and 2025. The main central banks are also expected to start reducing their interest rates in the second half of 2024, supported by a sustained easing of global inflation throughout 2024-25.

Regarding oil supplies, OPEC predicts an increase in supply from third countries this year, to 70.53 million barrels per day, a growth revised downwards from last month’s document. By 2025, supply should reach 71.93 million barrels per day, with the US, Brazil, Canada and Norway driving production growth, while Russia and Mexico will reduce their supplies.

Saudi oil company Aramco has announced a 24.7% drop in its net profits in 2023, reaching a total of 121.3 billion dollars, according to a company statement.

Despite the reduction, Aramco’s profits in 2023 represent the second highest in the company’s history, underlining its ability to adapt to adverse global conditions, as highlighted by the company itself.

The previous year’s results, when the company recorded 161 billion dollars in net profits, were driven by rising crude oil prices amid geopolitical events and the recovery of post-pandemic demand, factors that dissipated over the course of the year.

Aramco attributed the drop in profits in 2023 to lower crude oil prices, volumes sold and refining and chemicals margins, partially offset by factors such as reduced production royalties and lower income taxes.

Aramco CEO Amin Nasser attributed the company’s solid financial performance to its resilience, highlighting the company’s ongoing investments to create greater value in the oil sector.