Oil concessionaires in Mozambique must now provide detailed information on salaries and the contracting of goods and services to the government, including proof of tender proposals received.
This new mandate is outlined in the Ministry of Mineral Resources and Energy’s diploma 55/2024, effective from July 5th, 2024, which approves Guidance Mechanisms for Obligations for Contracting Goods and Provision of Services, Employment Programs, Training Programs, Association with Nationals, Preferential Rights, and Adjustment of Conduct of concessionaires.
These changes impact foreign concessionaires operating in Mozambique’s oil and natural gas sector, a country with the third-largest natural gas reserves in Africa, estimated at 180 million cubic feet.
The diploma aims to regulate employment programs, training initiatives, association with nationals, preference in contracting goods and services, conduct adjustments, and respective reports. Its objectives include ensuring job opportunities for Mozambican citizens, training individuals through national and international cooperation, and promoting the participation of national suppliers in goods and services contracts.
Concessionaires must comply with obligations related to association with nationals and the right of preference, as defined in petroleum legislation.
They are required to provide the National Petroleum Institute (INP) with documents proving employee numbers, positions, origin, gender, disability status, salary scales, and allowances.
When contracting goods and services, concessionaires must submit information on the nationality of contracted companies, right of preference, names of suppliers, association with nationals, and supporting documents for public tender notices, offers from all participating suppliers, and contracts.
The diploma also stipulates that concessionaires must employ a minimum number of Mozambican nationals: at least 25% in higher positions and 85% in technical roles.
If a qualified national workforce is unavailable, the hiring of foreign nationals may be authorized upon proof of this impossibility.
Concessionaires are required to provide training grants, including at least 1,200 hours of technical-professional training and 600 hours of professional training, as well as support for higher education. During the research and development period, for every $50 million investment, concessionaires must ensure training grants for Mozambicans, including two higher education courses, five technical-professional courses, five professional training courses, and 200 ad hoc courses. These numbers are set to double during the production period.
