Maputo, Mozambique — 10 April 2013 – Oil and gas companies operating in Mozambique must communicate any discovery of oil or gas to the authorities within 24 hours, under the terms of a proposed change to the Oil Law, of 21 February 2001.
This has been revealed here by a senior government spokesman at the end of the Council of Ministers meeting, reports Macauhub News Agency. Deputy justice minister, Alberto Nkutumula said that, with a view to attracting investors, the proposed law included clauses on environmental pollution, local development and rationalisation of oil resources, along with others that made procedures for the sector clearer
Nkutumula noted that in future companies that were prospecting for oil and gas would be required to pay compensation for damage caused by the activity, as well as being required to comply with environmental standards.
According to Mozambican news agency AIM, the spokesman said that the proposed change to the law outlined that oil operations would require a concession contract granted via a public tender or through direct negotiation.
The proposal, which has yet to be approved by parliament, also outlines that “a percentage of revenues resulting from oil operations in Mozambique will go to the communities where the oil operations are located.”
Source: Macauhub News Agency. For more information, click here.