New Regulation For The Licensing Of Petroleum Infrastructures And Operations

• Published date: 04 November 2020
• Subject Matter: Corporate/Commercial Law, Government, Public Sector, Energy and Natural Resources, Corporate and Company Law, Oil, Gas & Electricity, Government Contracts, Procurement & PPP
• Law Firm: Tauil & Chequer
• Author: Mr Paulo Rage

On September 18, 2020, the Council of Ministers of Mozambique published the new Regulation for the Licensing of Infrastructure and Petroleum Operations in Mozambique by means of Decree No. 84/2020 ("RLIPO"). Effective as of the date of its publication, RLIPO replaces the previous regulation on the subject, Ministerial Diploma No. 272/2009. While not significantly different from the previous regulation, RLIPO brings some improvements to the licensing of petroleum infrastructures.

Overview

The RLIPO updates the licensing rules for the construction, installation, modification, replacement and demobilization of petroleum facilities, including storage and transportation facilities. The RLIPO does not cover the licensing or inspection of facilities for lifting and transportation of crude oil and other raw materials for the production of their byproducts.

The RLIPO applies to concessionaires, operators, their contractors and subcontractors and other legal entities involved in petroleum operations. Natural persons are not expressly covered by the RLIPO although they had been covered by Ministerial Diploma No. 272/2009.

The National Petroleum Institute ("INP") continues to be the government entity responsible for the issue and suspension of licenses as well as the registration of petroleum facilities and the management of their records. The INP's attributions under the RLIPO were reinstated and clarified. From a comparative law perspective, the decision to concentrate these attributions in a single government entity is common, as is the case in Brazil, with the National Agency of Petroleum and Biofuels ("ANP"); in San Tome and Principe, with the National Agency of Petroleum ("ANP-STP"); and in Angola. with the newly created Angolan National Oil, Gas and Biofuels Agency ("ANPG").

Licenses and Authorizations

Under the RLIPO, facilities and operations are in either of two groups, depending on whether it is necessary for them to obtain a license or an authorization from the INP:

1. Activities subject to the licensing procedure: the construction, installation, modification, operation and demobilization of any facility employed in petroleum operations; as well as development wells; drilling, production and storage vessels; and the transportation facilities.
   
   Of the licenses provided under the RLIPO, the main types for companies operating in the petroleum sector in Mozambique
   1. Installation License. Required to construct, renovate, modify replace, maintain and expand...