Mozambique

Local Content Compliance — Mozambique

East Africa's emerging LNG giant. 30+ companies under INP oversight. $50B+ in LNG investment. LCA Desk Mozambique module coming 2027.

30+

Companies in LNG & Petroleum

15+

Local Content Categories

License

Revocation Risk

2014

LC Regulations Enacted

Regulatory Framework

Mozambique's Local Content Framework

Mozambique's local content requirements are governed by Law 15/2017 (Petroleum Law) and Decree 2/2014 (Local Content Regulations). The INP (Instituto Nacional de Petróleo) oversees compliance across the petroleum and LNG value chain, with powers to suspend licenses and mandate corrective action.

Regulatory Body

INP

Instituto Nacional de Petróleo / National Petroleum Institute

Key Law

Law 15/2017 + Decree 2/2014

Petroleum Law and Local Content Regulations

Headquarters

Maputo, Mozambique

National coordination of petroleum operations

Scope

LNG & Petroleum Operations

Upstream, midstream, and associated services

Key Provisions

What the Law Requires

Mozambique's local content framework mandates employment priority, procurement obligations, and community development across all petroleum operations.

Mozambican Employment Priority

Operators must prioritize Mozambican nationals for employment. Detailed workforce plans required with progressive localization targets across all skill levels, from entry-level to management.

Local Procurement Obligations

Operators must give preference to Mozambican goods and services. Annual procurement plans must demonstrate efforts to source locally before engaging foreign suppliers.

Training & Capacity Building

Mandatory investment in training Mozambican nationals. Operators must allocate a percentage of contract value to skills development and contribute to the national training fund.

Local Content Plans

Comprehensive plans required before project commencement, covering employment, procurement, training, and technology transfer commitments aligned with INP guidelines.

Technology Transfer Programs

Operators must implement structured knowledge transfer programs. Expatriate staff must mentor and train Mozambican counterparts with defined handover timelines.

Community Development Obligations

Investment in local community development projects, particularly in areas affected by petroleum operations. Social impact assessments required.

Filing Requirements

Required Submissions

Local Content Plan

Comprehensive plan detailing employment, procurement, and training commitments.

Due

Before project approval

Frequency

Per project

Annual Local Content Report

Progress on commitments including workforce breakdown and procurement data.

Due

Annually

Frequency

Annual

Training Investment Report

Details of training expenditure and programs delivered for Mozambican nationals.

Due

Annually

Frequency

Annual

Procurement Compliance Report

Breakdown of local vs international procurement by category and value.

Due

Annually

Frequency

Annual

Community Development Report

Report on community investments and social impact initiatives.

Due

Annually

Frequency

Annual

Enforcement

Non-Compliance Penalties

The INP has enforcement powers including license suspension, revocation, and referral for criminal prosecution for serious violations.

OffenceConsequence
Failure to submit Local Content PlanLicense suspension
Non-compliance with approved planLicense revocation risk
Failure to meet employment targetsMandatory corrective action
Providing false compliance dataCriminal prosecution risk
Failure to submit annual reportsMonetary penalties + increased oversight

Key Players

Major Operators in Mozambique

TotalEnergies Mozambique

ExxonMobil Mozambique

ENI (Mozambique Rovuma Basin)

CNOOC

ENH (Empresa Nacional de Hidrocarbonetos)

Sasol Petroleum Mozambique

Galp Energia

PTTEP (PTT Exploration & Production)

Mozambique vs. Guyana: How the Laws Compare

Aspect🇲🇿 Mozambique🇬🇾 Guyana
LawLaw 15/2017 + Decree 2/2014Local Content Act 2021
RegulatorINPLocal Content Secretariat
Categories15+ categories40+ categories
Max PenaltyLicense revocationGY$50 million
Key FilingsLC Plan + Annual ReportsHalf-Yearly + Annual + Master Plan
WorkforceProgressive localization targets11 employment categories
LCA Desk SupportComing 2027Live now

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