Mid term review of the INP Agreement Moz-0032 Moz-14/00001. Strengthening of the oil and gas sector in Mozambique

Mid term review of the INP Agreement Moz-0032 Moz-14/00001. Strengthening of the oil and gas sector in Mozambique

Published Sep 2016

Authors

Chiqui Arregui, Robert Denny

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INTRODUCTION
The INP Agreement MOZ-0032 MOZ-14/0000 (May 1st, 2014 to April 30th, 2018) is an institutional cooperation agreement between the Instituto Nacional de Petróleo (INP) in Mozambique and the Ministry of Petroleum in Norway implemented through the Norwegian National Petroleum Directorate (NPD).     Designed with a budget of NOK 50,460,000, its aim is to contribute to the “economically, environmentally and socially responsible management of petroleum resources in Mozambique”.
This report summarizes the findings from the Mid-Term Review (MTR) carried out by Community Wisdom Partners (CWP) in mid 2016, based on a review of relevant documentation and over 40 in-depth interviews.  The aim of the MTR was to verify the degree of progress made in planned activities, to assess results achieved to date, and to recommend any changes or measures to maximize opportunities for the second half of the programme.

FINDINGS
The MTR revealed positive results.  The INP Agreement was designed to meet the most pressing needs of Mozambique ́s petroleum sector regulatory environment.  It has successfully responded and adapted to current and emerging sector needs. The largest single deviance from plans has been the justified decision to dedicate more time and funds to legal advisory services than initially anticipated, at the expense of other areas.
There is no doubting the impact of the project in terms of building INP capacity.  The development of the INP as regulator and gatekeeper of legislation around petroleum in Mozambique has increased greatly since the start of the INP Agreement, an achievement which is in large part attributable to Norway ́s support.  The country’s great success in O&G over the last five years has been in making itself an attractive investment destination for O&G industry majors with the capital resources and technical skills to lead projects through to production in a socially and environmentally responsible way.
By the end of 2015, the programme had disbursed 56% of core programme funds; and current funding is expected to be exhausted by the end of 2016, with additional funds required for the programme to achieve its goals by the end of the established period.
It is recommended that minor programmatic adjustments be made in the final two years of operations.  It is also clear that support will be needed beyond 2018 to address the underlying imbalances in experience, capacity and money – and thus power - between INP and major O&G companies, and build a robust regulatory system and institutions in line with a fast developing oil sector.  These are essential pillars for Mozambique to work towards economically, environmentally and socially responsible management of petroleum resources.

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