https://www.engineeringnews.co.za
Export|Gas|LNG|Projects|Resources|Operations
Export|Gas|LNG|Projects|Resources|Operations
export|gas|lng|projects|resources|operations

Mozambique lays down legislation to govern revenue from natural-gas exports

13th March 2024

By: Bloomberg

  

Font size: - +

Mozambique’s council of ministers approved a decree for the nation’s new sovereign wealth fund legislation, governing how one of the world’s poorest nations spends earnings from an estimated $91.7-billion in natural-gas exports in the coming decades.

Introducing the law was a key part of an economic program with the International Monetary Fund. It’s an important step in improving governance in the southeast African nation that got cut off from most international financing in 2016, when the government admitted it had borrowed more than $1-billion that it didn’t disclose to the IMF as required.

That led to a debt default and spawned court cases from New York to London.

“The regulation represents a significant advance in the search for transparency, accountability and good governance in the natural resources sector,” Mozambique’s finance ministry said in a statement Tuesday. “Mozambique is laying the foundations for management based on best international practices.”

The law sees 40% of state revenues from liquefied natural-gas exports going to the fund for the first 15 years, with the rest allocated to the national budget. After that, the money will be split evenly between savings and annual spending.

The decree requires a supervision committee, an independent body including civil society representatives that will be responsible for controlling and monitoring all of the fund’s operations related to revenues, deposits, resource allocation and management.

Its obligation to report directly to the parliament and publish its findings quarterly will ensure transparency and accountability, the finance ministry said.

Mozambique joined the elite club of LNG exporters in 2022, when a 3.4 million ton per year offshore platform sold its first shipment. Still, the nation’s much bigger onshore export projects, which companies including TotalEnergies SE and ExxonMobil Corp. plan, have suffered years-long delays as Islamic State-linked militants carried out a violent campaign in the surrounding province of Cabo Delgado.

Edited by Bloomberg

Comments

 

Showroom

Immersive Technologies
Immersive Technologies

Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.

VISIT SHOWROOM 
Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 10 May 2024
Magazine round up | 17 May 2024
17th May 2024
Photo of Martin Creamer
On-The-Air (10/05/2024)
10th May 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.328 0.381s - 174pq - 2rq
Subscribe Now