Mozambique Bolsters State Control Over Oil Sector with Expanded INP Powers
Mozambique’s National Petroleum Institute (INP) has been significantly empowered, now operating as the Petroleum Regulatory Authority, following the enactment of new legislation that broadens its oversight, regulatory, and sanctioning capabilities within the national petroleum sector. This strategic move, effective from 3 June 2026, with Law No. 8/2026, aims to solidify the INP’s position as the principal regulatory body, ensuring its functional and technical independence to safeguard the state’s vital interests in the hydrocarbons industry.
The institutional statement clarifying the INP’s enhanced mandate underscores a commitment to reinforcing state sovereignty over natural resources and maximising economic benefits from oil and gas exploration. The revised legal framework grants the INP expanded decision-making and sanctioning authority, alongside a wider scope of regulatory competencies. This includes the responsibility for establishing guidelines for both public and private sector participation, licensing, inspection, supervision, and control of petroleum operations, as well as managing the award processes for exploration and production rights.
Key among the new responsibilities are the rigorous oversight of concession contract compliance, the approval of petroleum project budgets, and the verification of recoverable cost reports submitted by concessionaires. The INP will also be tasked with managing and monitoring sector production data, reinforcing its role in implementing local content policies. Furthermore, the legislation mandates the verification and approval of metering systems at all operational points, from wells to production facilities, ensuring accuracy and accountability.
A notable expansion of the INP’s remit is the authority to regulate and supervise Carbon Capture, Utilisation, and Storage (CCUS) activities directly linked to petroleum operations. The institute is now positioned to propose policies and standards for this nascent but critical segment of the energy industry. The legislation also empowers the regulator to conduct comprehensive audits and inspections of petroleum operations and declared recoverable costs, thereby enhancing transparency and state oversight.
This legislative reform, approved by the Assembly of the Republic, also introduces a significant measure requiring a minimum quota of 25% of all petroleum and gas produced in Mozambique, including Liquefied Natural Gas (LNG), to be reserved exclusively for the domestic market. This initiative reflects the government’s objective to transform energy resources into drivers of economic development, industrialisation, and value creation, addressing identified gaps in revenue capture despite substantial investment in the sector. Mozambique’s strategic position, with three approved LNG mega-projects in the Rovuma Basin, underscores the importance of these strengthened regulatory powers for managing its vast hydrocarbon wealth.
