Petroleum Law (Law No. 21/2014)

The Petroleum Law sets the regulatory framework for oil and gas production in Mozambique. It sets the National Company for Hydrocarbons to be the national entity responsible for the prospection, production and commercialisation of petroleum products. Private companies can only be granted access through production sharing contracts.

The law prohibits the flaring of petroleum unless it is permitted by the Government upon demonstration that all alternative methods for disposal are unsafe or environmentally unacceptable. Flaring for the purpose of testing, safety or emergency reasons also requires authorisation by the Government. The law also requires operators to comply with the environmental impact study and for closure, submit a decommission plan to the government and create a fund for closure and decommissioning of infrastructure. 

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