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petroleum industry mozambique

The Petroleum Industry in Mozambique 2022

Charles Chinya | Mozambique | 29 September 2022

The Petroleum Industry in Mozambique 2019

Louise Mitchell | Mozambique | 17 September 2019

The Petroleum Industry in Mozambique 2017

Louise Mitchell | Mozambique | 28 November 2017

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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 Company

Strengths

• 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.

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.

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.

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.

Read More..
The Petroleum Industry in Mozambique
The Petroleum Industry in Mozambique 2022

Full Report

R 9 500.00(ZAR) estimated $514.57 (USD)*

Industry Landscape

R 6 650.00(ZAR) estimated $ 360.20 (USD)*

Historical Reports

The Petroleum Industry in Mozambique 2019-09-17

R 1 900.00(ZAR) estimated $102.91 (USD)*

View Report Add to Cart

The Petroleum Industry in Mozambique 2017-11-28

R 1 900.00(ZAR) estimated $102.91 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1.INTRODUCTION 1
2. COUNTRY PROFILE 1
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 8
3.2. Geographic Position 10
3.3. Size of the Industry 12
3.4. Key Success Factors and Pain Points 13
4. LOCAL 14
4.1. Key Trends 23
4.2. Notable Players 23
4.3. Trade 26
4.4. Corporate Actions 27
4.5. Regulations 29
4.6. Enterprise Development and Social Economic Development 30
5. AFRICA 32
6. INTERNATIONAL 39
7. INFLUENCING FACTORS 43
7.1. COVID-19 43
7.2. Economic Environment 43
7.3. Labour 44
7.4. Security Issues 45
7.5. Natural Disasters 46
7.6. Environmental Issues 46
7.7. Technology, Research and Development (R&D) and Innovation 47
7.8. Government Support 48
7.9. Input Costs 49
8. COMPETITIVE ENVIRONMENT 49
8.1 Barriers to Entry 50
9. SWOT ANALYSIS 50
10. OUTLOOK 51
11. INDUSTRY ASSOCIATIONS 52
12. REFERENCES 52
12.1 Publications 52
12.2 Websites 53
APPENDIX 1 55
Summary of Notable Players 55
COMPANY PROFILES 57
Afrox Mozambique Ltda 57
Bharat Petroleum Corporation Ltd 59
BP Mocambique Ltda 62
China National Petroleum Corporation 64
Companhia Mozambicana de Hidrocarbonetos S.A. 66
Eni SpA 68
Galp Mozambique Ltda 76
Importadora Mocambicana De Petroleos Ltda 77
Matola Gas Company SA 78
Mozambique Rovuma Venture SpA 80
Oleos Mocambique Ltda 82
PetroBeira Ltda 83
Petroleos de Mozambique S.A. 84
Petromoc e Sasol SARL 86
Puma Energy (Mocambique) Ltda 87
Sasol Ltd 88
TotalEnergies Marketing Mocambique S.A. 93
Vivo Energy Mozambique Ltda 95

Introduction

This report focuses on the manufacture of petroleum products from crude oil and natural gas in Mozambique, and the wholesale and retail trade of these products. The manufacture of lubricating oils and greases, primarily from other organic products, as well as the manufacture of other petroleum/synthesised products are also included. The liquid fuels sector is dominated by multinational petroleum companies such as BP, Total, Sasol and Puma Energy that distribute products through partnerships with local companies. Mozambique is a net importer of petroleum products, and bitumen is the only product that is produced locally. Petroleum products worth US$1.05bn were imported in 2018, increasing by 27.1% from US$822.2m in 2017. In the first quarter of 2019, diesel contributed US$71.3m (4.8%) to the total of US$1.5bn imports, and oil and lubricants stood at US$39.9m. The decision by Texas-based Anadarko to invest about US$25bn in the Rovuma liquefied natural gas (LNG) project will see Anadarko start building the infrastructure for LNG plants. The investment will bring opportunities for local businesses and skills development. Industry participants did, however, caution that local businesses might not have the necessary resources and skills to execute a project of this magnitude.

Strengths

• 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 all petroleum products.
• Reforms in the retail price of fuel will help government to consolidate the budget.
• 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.

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.
• Increase in fuel prices after the scrapping of government subsidies is impacting on poor people in urban areas.
• 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.

Opportunities

• Exports to neighbouring countries that are net importers of petroleum products contribute to the fiscus.
• Increased demand for petroleum products will lead to an increase in business opportunities for distributors.
• The discovery of gas fields presents major opportunities for local processing of petroleum products.

Threats

• Government’s dependence on donor funding restricts its ability to spend on infrastructure projects.
• Low literacy rates and high poverty levels are presenting barriers to skills development in the sector.
• Mozambique’s exposure to natural disasters affects government’s ability to restructure debt.
• Political unrest could lead to delays in projects.

Outlook

Despite domestic challenges posed by debt restructuring, corruption and political unrest, as well as the recovery in the international oil price, industry commentators expect international players in the oil and gas market to continue to invest in Mozambique’s vast on- and offshore gas fields. The growing population and expected improved investor and consumer sentiment will be drivers of increased demand for petroleum products. However, petroleum products will continue to be imported until the construction of infrastructure for transporting gas onto the mainland where it can be processed.

The Petroleum Industry in Mozambique
The Petroleum Industry in Mozambique 2019

Full Report

R 1 900.00(ZAR) estimated $102.91 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.04 (USD)*

Historical Reports

The Petroleum Industry in Mozambique 2022-09-29

R 9 500.00(ZAR) estimated $514.57 (USD)*

View Report Add to Cart

The Petroleum Industry in Mozambique 2017-11-28

R 1 900.00(ZAR) estimated $102.91 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 8
4. SIZE OF THE INDUSTRY 10
5. STATE OF THE INDUSTRY 12
5.1. Local 12
5.1.1. Trade 15
5.1.2. Corporate Actions 18
5.1.3. Regulations 19
5.1.4. Enterprise Development and Social Economic Development 21
5.2. Continental 22
5.3. International 27
6. INFLUENCING FACTORS 28
6.1. Economic Environment 28
6.2. Information Technology, Research and Development (R&D) and Innovation 29
6.3. Labour 30
6.4. Environmental Concerns 32
7. COMPETITION 33
7.1. Barriers to Entry 34
8. SWOT ANALYSIS 34
9. OUTLOOK 35
10. INDUSTRY ASSOCIATIONS 36
11. REFERENCES 36
11.1. Publications 36
11.2. Websites 37
APPENDIX 1 38
Summary of Notable Players 38
COMPANY PROFILES 40
AFGRI OPERATIONS (PTY) LTD 40
AFROX MOZAMBIQUE LDA 44
BP MOZAMBIQUE LDA 46
COMPANHIA MOZAMBICANA DE HIDROCARBONETOS S.A. 48
ENI SPA 51
OLEOS MOCAMBIQUE LDA 62
PETROBEIRA LDA 63
PETROGAL MOZAMBIQUE LDA 64
PETROLEOS DE MOZAMBIQUE S.A. 65
PETROMOC E SASOL SARL 67
PUMA ENERGY MOZAMBIQUE LDA 69
SASOL LTD 70
TOTAL MOZAMBIQUE S.A. 76
VIVO ENERGY MOZAMBIQUE LDA 78

Report Coverage

The detailed report on the Mozambican Petroleum Industry focuses on the manufacture and retail of petroleum products from crude oil and natural gas. Profiles are provided for 11 companies, including BP Mozambique which owns 28 retail outlets, 35% of the market’s supply of lubricants and 50% of aviation fuels supply. Also profiled is competitor, Total which announced in 2016 that it would invest US$50m on the expansion of its local service station network, increasing the number of service stations from 43 to 60 in an attempt to obtain 30% of the market by the end of 2017.

Introduction

This report focuses on the manufacture of petroleum products from crude oil and natural gas in Mozambique, as well as the wholesale and retail trade of the products. The manufacture of lubricating oils and greases, primarily from other organic products, as well as the manufacture of other petroleum/synthesised products are also included. The World Bank estimated that Mozambique’s total fuel consumption increased an average 17% annually between 2012 and 2016 and as Mozambique is a net importer of petroleum products, the recovery of the oil price has an effect on the national accounts balance of the country. Currently national energy and fuel policies support the increase in domestic production and consumption of liquefied petroleum gas (LPG) but the potential for biofuels production is being impacted by diminished economic returns, a lack of funding and climatic changes.

Strengths

• Government support for LPG infrastructure projects.
• International players are contributing to skills development in the sector.
• Major international players have a presence in the distribution of all petroleum products.
• Reforms in the retail price of fuel will help government to consolidate the budget and reduce exposure to external fuel and oil shocks.
• The discovery of some of the biggest gas fields in the world is encouraging international players to invest in infrastructure development projects.

Weaknesses

• Biofuel production is currently not cost-effective.
• Exploitation by international oil traders leads to inflated fuel prices, which puts pressure on consumers and the national budget.
• Poor infrastructure adds to the costs of transporting products.
• The sector is dependent on FDI and the decrease in FDI will slow down infrastructure development.

Opportunities

• Exports to neighbouring countries that are net importers of petroleum products.
• The discovery of gas fields presents major opportunities for local processing of petroleum products.

Threats

• Government’s dependence on donor funding leads to a shortage in funding that is halting infrastructure projects.
• Increasing pressure on the economy which could result in an increase in inflation and a weakening currency.
• Political unrest could lead to delays in projects as companies evacuate staff in affected areas.

Outlook

Despite domestic challenges posed by debt restructuring, corruption and political unrest, as well as the recovery in the international oil price, industry commentators expect international players in the oil and gas market to continue to invest in Mozambique’s vast on- and offshore gas fields. In the medium-term the World Bank expects inflationary pressures to ease in light of further progress in developing Mozambique’s Rovuma basin gas projects, developments in the coal sector, and stabilising macroeconomic conditions. The growing population and expected improved investor and consumer sentiment will be drivers of increased demand for petroleum products. However, petroleum products will continue to be imported until the construction of infrastructure for transporting gas onto the mainland where it can be processed has been completed.

Read More..
The Petroleum Industry in Mozambique
The Petroleum Industry in Mozambique 2017

Full Report

R 1 900.00(ZAR) estimated $103.86 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 72.04 (USD)*

Historical Reports

The Petroleum Industry in Mozambique 2022-09-29

R 9 500.00(ZAR) estimated $514.57 (USD)*

View Report Add to Cart

The Petroleum Industry in Mozambique 2019-09-17

R 1 900.00(ZAR) estimated $102.91 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 5
3.1. Industry Value Chain 7
4. SIZE OF THE INDUSTRY 8
5. STATE OF THE INDUSTRY 12
5.1. Local 12
5.1.1. Corporate Actions 17
5.1.2. Regulations 18
5.1.3. Enterprise Development and Social Economic Development 19
5.2. Continental 22
5.3. International 23
6. INFLUENCING FACTORS 24
6.1. Economic Environment 24
6.2. Government Infrastructure Programme Spend 25
6.3. Private Sector Investment 25
6.4. Socio-Political Environment and Civil War 26
6.5. Information Technology, Research and Development (R&D) and Innovation 26
6.6. Labour 28
6.7. Corruption 29
6.8. Environmental Concerns 30
7. COMPETITION 31
7.1. Barriers to Entry 32
8. SWOT ANALYSIS 33
9. OUTLOOK 34
10. INDUSTRY ASSOCIATIONS 34
11. REFERENCES 35
11.1. Publications 35
11.2. Websites 35
COMPANY PROFILES 37
AFGRI OPERATIONS (PTY) LTD 37
BP MOZAMBIQUE LDA 42
ENGEN PETROLEUM (MOZAMBIQUE) LTD 44
ENI SPA 46
KULANI AFRICA GAS (PTY) LTD 57
PETROGAL MOZAMBIQUE LDA 58
PETROLEOS DE MOZAMBIQUE SA 59
PUMA ENERGY MOZAMBIQUE LDA 61
SASOL LTD 62
TOTAL MOZAMBIQUE SA 68
VIVO ENERGY MOZAMBIQUE LDA 69