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MIREME: Oil Concessionaires Must Report Salaries and Contracts to the Government

MIREME: Oil Concessionaires Must Report Salaries and Contracts to the Government

The Ministry of Mineral Resources and Energy (MIREME), through ministerial decree 55/2024, has determined that oil concessionaires are now obliged to provide detailed information on salaries and contracting processes to the government. This diploma, approved on 5 July and which came into force on the same day, establishes new requirements for transparency in the management of resources and administrative processes in the oil sector.

According to Lusa, the new regulation applies mainly to foreign concessionaires operating in the oil and natural gas sector in Mozambique, which has the third largest natural gas reserves in Africa, estimated at 180 billion cubic feet. ‘The main aim is to ensure that citizens have access to employment opportunities, to promote the training of workers and companies through national and international co-operation and to ensure the participation of local suppliers in the contracting of goods and services,’ the document states.

According to the law, concessionaires must submit documents to the National Petroleum Institute (INP) proving the number and list of employees, specifying data such as origin, gender and the inclusion of people with disabilities. They must also submit the salary scale and the respective allowances. With regard to the contracting of goods and services, companies will have to provide information on the nationality of the contracted companies, ensure compliance with the right of first refusal and submit documents proving the calls for tenders and offers from all participating suppliers.

‘The main aim is to ensure that citizens have access to employment opportunities, to promote the training of workers and companies through national and international co-operation and to ensure the participation of local suppliers in the procurement of goods and services’

With regard to the composition of the workforce, the law stipulates that concessionaires must ensure that at least 25 per cent of workers in senior positions and 85 per cent in technical positions are nationals. If there is no qualified labour available in the country, they will be allowed to hire foreign workers, as long as the company demonstrates that it is impossible to recruit local workers.

As reported by Lusa, the law also requires concessionaires to provide training grants, which must include at least 1,200 hours of technical-vocational training and 600 hours of vocational training, as well as higher education opportunities. During the research and development and production periods, the companies must ensure that training scholarships are awarded at educational institutions in Mozambique and abroad, with the aim of training Mozambicans in various areas, including higher education, technical-vocational courses and vocational training.

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