Exclusive : Mozambique drilling for capacity

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Manuel Jose Sithole, Legal Adviser, Instituto Nacional de Petroleo, (INP) talks to Petrolgas Report (PGR) about the current trends in Mozambique’s  energy industry, incentives for investors among others at the Sub-Saharan  Africa international petroleum exhibition and conference 2020.

INP is the regulatory authority responsible for the administration and promotion of Petroleum Operations in Mozambique.

Ayobami Adedinni, Editor brings the excerpt:

Mozambique is shaping up to become the world’s next  energy superpower. What have been the challenge so and success stories so far?

The big challenge is to set up the industry with well equipped local companies. At this stage, the major challenge is to grant authorization to local companies to develop their operations in Mozambique.

As we have started the process, we are learning from others. We have seen success examples of Nigeria, Ghana among other countries in Africa.

We have a lot of discoveries which will help us to go forward in this process.

Of course, this is not easy for us as starters but we have to learn from other’s errors and make it better for us and see opportunities to develop our industry with best practices.

 

Now that Mozambique is becoming a gas hub, the conversation in the energy space is Green energy. How do you balance that?

 

It’s a challenge. It’s a process in which we have to ensure that the environment is safe.

Considering that green energy is the concern all over the world, we ensure that whatever we’re doing is done properly.

This is to show that we’re not just producers but producers doing it in the best way and for future generations also.

So, what are some of the incentives on ground for investors?

At this stage, we have to learn. It’s better when the big companies come to Mozambique and show us how to do it. So I think it’s opportunity because no more than ten companies are currently on it.

When you start the process, you can get substantial benefit in five years. You will be one of the first producers in Mozambique.

This is the best benefit we can offer at this stage and with time, more can come.

Mozambique has little experience in the oil and gas field. How do you groom local expertise?

We do have to work with expatriates. And one of the plans we have with the company is to train our people and I’m sure in 10 years, we can create our capacity and build the oil and gas sector by our people internally and externally.

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