Mozambique upstream fiscal summary Report

Country Report 25 May 2023

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Report summary

Upstream licences in Mozambique are awarded under production sharing contract (PSC) terms which are governed by the 2014 Petroleum Law. The application and awarding of licences are negotiated through bids submitted in licensing rounds. The National Oil Company (NOC), Empresa Nacional de Hidrocarbonetos de Mocambique (ENH), is entitled to a minimum 10% stake in any commercial development, comprising a carried interest through the exploration phase. The main production sharing terms are cost recovery which is fixed and profit sharing linked to an R-factor which is biddable subject to certain limits. Royalty (known as Petroleum Production Tax or IPP) is levied at flat rates and is fixed.

Basis
Licence terms
Government equity participation
Fiscal terms
- Ring fencing
- Bonuses, rentals and fees
- Indirect taxes
- Royalty
- PSC cost recovery
- PSC profit sharing
- Additional petroleum taxes
- Domestic market obligation
- Corporate income tax
- Product pricing
Recent history of fiscal changes
Stability provisions
Split of the barrel and share of profit
Effective royalty rate and maximum government share
Progressivity
Fiscal deterrence