Fuel policy creates logistics opportunities

Mozambique is ensuring that it becomes a producer of fuel, fertilisers and other petrochemical products by ensuring that “at least” 25% of the oil and gas extracted in the country is destined for the domestic market. This has far-reaching logistics implications. Plans to process the gas at sea and export it will have to be adapted to bring at least a quarter of production ashore. Refineries will have to be built – which will keep project cargo specialists busy for some time– as well as the logistics infrastructure for the transport of the refined products. New regulations which are in the process of being passed empower the state’s negotiating body, Empresa Nacional de Hidrocarbonetos (ENH), to play a decisive role in promoting and commercialising petroleum products. It states that “oil operations are practised via a concession contract resulting from public tender, simultaneous negotiation or direct negotiation,” and that “the granting of rights to carry out petroleum operations must always respect national interests vis-à-vis defence, navigation, research and preservation of marine resources, existing economic activities and the environment in general.” In terms of Mozambican legislation all petroleum and gas resources are state property, and the state has the right to participate in all hydrocarbon operations at any phase. ENH is seeking partners to expand the northern ports of Pemba and Palma for the LNG industry. This is in addition to the multinationals already active in the country. Companies researching the viability of opportunities include Enron Oil and Gas Resources, Energy Africa, Sasol Petroleum International, Leopardus Resources Ltd, Zarara Petroleum Resources, TotalFinaElf SA, Trefoil Ltd and Lonrho de Provuma Petroleum, according to the Commonwealth Network. Companies that have gained prospecting rights to look for oil include US-based Anadarko, ENI of Italy, Artumas of Canada, Norsk Hydro of Norway and Petronas of Malaysia.