Photo: Paul Joyson-Hicks, Statoil ASA.Photo: Paul Joyson-Hicks, Statoil ASA

Background and cooperation in the Petroleum Sector

Norway has provided petroleum related assistance to Mozambique for more than three decades.

Norway is generally considered to be a country that has managed to harness the petroleum resources for the benefit of its people. Norwegian petroleum management has been characterized by strategic state ownership, strong and competent institutions, a continual build-up of technical knowledge, an advanced regulatory system with high respect for the environment and HSE (Health, Safety and Environment), and perhaps above all: society’s determination to secure control over the petroleum resources. The purpose of the Oil for Development Programme is to share Norwegian petroleum experience and support initiatives where there is ownership and demand in the partner country

Mozambique has a massive upstream potential in natural gas. The critical factor in the future exploitation of the country's gas, however, is establishing sound commercial criteria for a gas-gathering network capable of serving developing markets in the region – and elsewhere. A central challenge for Mozambique is also to translate its resource wealth into social and economic welfare for its people.

The Mozambican National Petroleum Institute (INP) is the government authority responsible for regulating the petroleum sector. INP conducts safety- and environmental audits, auditing of fiscal meters, both at the gas plant and at the receiving points, and is responsible for undertaking cost control of the exploration, construction and production activities, under the EPCC contracts with the oil companies (Exploration and Production Concession Contracts). Norway has supported INP since 2006. With the massive gas discoveries in the Rovuma basin since 2010, the prospects of future gas revenues have increased significantly. Still, the expansion into LNG (Liquefied Natural Gas) and other megaprojects presents huge regulatory and practical challenges for INP and other governmental institutions.

Through the Oil for Development Programme, the Norwegian Government intends to assist the Mozambican Government by developing technical capacity to regulate the sector. This is mainly done through the sharing of Norwegian technical competencies and experiences by the very same institutions that regulate and oversee the Norwegian petroleum sector. As such, the Oil for Development Programme provides assistance within environmental- , revenue- and resource management. In Mozambique, the focus has been primarily on resource management. However, Norway has also provided support to strengthening environmental institutions in Mozambique. Moreover, through the Tax for Development Programme Norway cooperates with the Mozambican Tax Authority (Autoridade Tributária) to improve coordination and revenue collection from the petroleum sector. In the new INP programme (2014-2018), further efforts will be made to coordinate activities with other governmental bodies.

Industries and companies developing as a result of the gas discoveries could potentially employ many Mozambicans. However, the petroleum industry is highly specialised and currently Mozambique lacks skilled workers. Norway supports the Ministry of Education/PIREP to build capacity through technical and vocational training related to the oil and gas sector in Cabo Delgado.

Along this, the Norwegian Embassy has also entered into cooperation with WWF-Mozambique and the Civil Society Platform on Natural Resources, currently led by CTV (Centro Terra Viva), with a particular emphasis on the petroleum sector. The Norwegian Embassy also supports the Mozambican Parliament through AWEPA, to provide training and capacity building on petroleum legislation and to share Norwegian experiences in this area.

Lastly, Norway supports a gender project where INP is a partner: “Gender and Energy – Gender Mainstreaming in energy and petroleum”.

Bookmark and Share