The Petroleum Industry in Mozambique 2022

Opportunities

Exports to neighbouring countries contribute to the fiscus.

Increased demand for petroleum products will lead to an increase in business opportunities for distributors. Investment in refinery activities. Opportunities for subsectors that can be contracted by oil and gas companies. The discovery of gas fields presents major opportunities for local processing of petroleum products.

Report Coverage

This report focuses on petroleum products from crude oil, natural gas, liquefied fuels and lubricating oils and greases, and the wholesale and retail trade of these products in Mozambique.

It includes information on exploration and production sites, licensing rounds, notable players and developments.

There are profiles of 18 companies including multinationals such as TotalEnergies, Eni and Galp, South African group Sasol, government-owned Empresa Nacional de Hidrocarbonetos (ENH) and Petromoc and Matola Gas CompanyStrengths

A favourable tax regime.

Government support through policies. International companies are investing in skills development of local people to complement skills requirements for mega projects. Major international players have a presence in the distribution of petroleum products. The discovery of some of the biggest gas fields in the world is encouraging international players to invest in infrastructure development projects. Transport of imported petroleum products to neighbouring land-locked countries.

Threats

Government’s dependence on donor funding restricts its ability to spend on infrastructure projects.

Low literacy rates and high poverty levels are barriers to skills development in the sector. Mozambique’s exposure to natural disasters affects government’s budget. Security situation, particularly armed insurgents in and around provinces with discovered oil and gas.

Weaknesses

Barriers to entry for small businesses could prevent the entry of potential new product distributors. Biofuel production is not cost-effective. Distribution is dominated by the network of established international players. Lack of local suppliers of specialised equipment for mega projects. Mozambique is a net importer of petroleum products, and imports are increasing to meet the demand of mega projects. Skills shortages for the execution of mega projects.