By means of Decree No. 84/2020, of 18 September, the Government of Mozambique has approved the new regulations on the licensing of petroleum facilities and operations. This new Decree, which is part of an ongoing reform in the O&G sector, although not expressly revoking Ministerial Order No. 272/2009, of 30 December (Regulations on Licensing of Petroleum Installations and Activities), ends-up grandfathering the same.

Scope

The new Regulations set-forth the rules and procedures for the licensing of the construction, installation, modification, replacement, operation and demobilization of petroleum infrastructures, including the storage and transportation by road, sea, river or railway of petroleum products, as well as the relevant permits and authorizations. The rules set-forth therein apply to all petroleum infrastructures to be installed by petroleum concessionaires, operators, their contractors and subcontractors and other legal entities engaged in the carrying-out petroleum operations within the territory of Mozambique.

Mandatory Licensing, Authorization and Registration

The construction, installation, modification, operation, demobilization of any infrastructure used for the carrying-out of petroleum operations (offshore and onshore), as well as those related to development wells, drilling rigs, production, storage and transportation by vehicles, are now subject to mandatory licensing with INP – National Petroleum Institute (“INP”).

Moreover, the (i) installation of petroleum infrastructures during the prospecting phase, (ii) installation and operation of petroleum infrastructures for a period below 180 days, (iii) replacement of parts or components of a petroleum infrastructure, as well as (iv) the transportation of petroleum by road, sea, river or railway, is now dependent on INP’s authorization.

Furthermore, the (i) installation of petroleum infrastructures during the prospecting phase, and the (ii) installation and operation of petroleum infrastructures for a period below 180 days, is also subject to registration with INP.

With the enactment of this new Regulations, INP sees its authority in terms of licensing and permitting in the O&G sector expanded.