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Legal Update

Mozambique Publishes New Model for Concession Contract for Exploration and Production of Petroleum

10 January 2017
Tauil & Chequer Legal Update

Resolution No. 25/2016 approves the new model of the Concession Contract for the Exploration and Production of Petroleum (“CCPP”) of Mozambique. The Contract confirms the concession rights in connection with the petroleum exploration, development and production activities, granting to each concessionaire the exclusive right to carry out operations for the production of petroleum within the area under concession.

The resolution seeks to adapt the contract model to the current legal framework for the petroleum sector, which was approved by Law No. 21/2014 ("Petroleum Law") and its respective regulation, approved by Decree No. 34/2015.

Among other provisions, the CCPP defines the rights granted to the concessionaire and its respective term, the work obligations during the research/exploration period, the rules for carrying out petroleum operations, the rules for the recovery of costs and right to production, the determination of the value of petroleum for tax purposes, the procedures for the assignment of rights, the requirements for: insurance and relevant coverage, and anti-bribery and corruption, as well as other applicable rules.

In addition, Resolution No. 25/2016 approves the following attachments, as part of the CCPP: (i) Description of the Concession Agreement Area, (ii) Map of the Concession Agreement Area, (iii) Accounting Procedures (iv) Model Bank Guarantee, (v) Parent Company Guarantee and (vi) the Joint Operations Agreements, which define the rights and obligations of the parties in connection with the operations under the CCPP.

The effectiveness of the CCPP is subject to its prior approval by the Council of Ministers and its execution by each concessionaire, as well as the approval of the Administrative Tribunal, the governmental body responsible for controlling the public accounts of the Republic of Mozambique.


  • Alexandre R. Chequer
    T +55 21 2127 4212
  • Bruno Triani Belchior
    T +55 21 2127 4205
  • Paulo Rage
    T +55 21 2127 4247
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