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ARTICLE · 09 FEBRUARY 2015

Mozambique’s Decree Law: Worth The Wait

A&O Shearman
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The much anticipated Decree Law for Offshore Areas 1 and 4 was published on 2 December 2014 (Decree Law No. 2/2014).

MozambiqueEnergy and Natural Resources
A&O Shearman
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The much anticipated Decree Law for Offshore Areas 1 and 4 was published on 2 December 2014 (Decree Law No. 2/2014). It provides a clear and comprehensive legal framework for their development and includes significant concessions on many regulatory issues. An overview of the key terms of the Decree Law is set out below.

Scope of Application

The Decree Law applies to Concessionaires under existing exploration and production concession contracts (EPCCs), any special purpose vehicles (SPVs) formed by such Concessionaires and any persons entering into contracts with Concessionaires or SPVs (such as contractors, financiers and employees) as well as their subcontractors, in each case, in connection with activities relating to the development and operation of Offshore Areas 1 or 4 and which are undertaken under existing EPCCs or any other agreements with the Mozambican Government (Art. 2(3) and 2(4)).

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