Gas revenues generate US$67.6 million for Mozambique in nine months

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Gas revenues generate US$67.6 million for Mozambique in nine months

3:02 CAT | 13 Nov 2025

FILE - For illustration purposes only. [File photo: Eni]

The exploitation of oil and natural gas earned Mozambique US$67.64 million up to September, according to data from the Ministry of Finance.

According to budget execution data from January to September 2025, the accumulated revenues over nine months amount to US$24.68 million from the Mining Production Tax and US$42.96 million from the ‘profit oil’ component, which corresponds to the portion of production that exceeds the “cost oil”, attributed to the Mozambican State.

Within the framework of the legislation that created the Sovereign Fund of Mozambique (FSM), which will be funded with 40% of natural gas revenues, the document also refers to accumulated revenues from 2022 to 2024 of US$164.99 million.

Thus, since 2022, these revenues total US$232.33 million, deposited in the Transitional Oil and Gas Revenue account at the central bank, which is already operationalising the future management of the Sovereign Fund of Mozambique, depending only on the signing of the agreement with the Government, according to governor Rogério Zandamela.

“Operational preparation for the management of the Sovereign Fund of Mozambique, awaiting only the signing of the Management Agreement with the Ministry of Finance,” said on 5 November the governor of the central bank, Rogério Zandamela, regarding priorities among the institutional reforms of the central bank.

The parliament approved on 15 December 2023 the creation of the Sovereign Fund of Mozambique with revenues from natural gas exploitation, which in the 2040s are expected to reach US$6 billion annually.

The fund was instituted in April the following year and since then the legal framework amendment has provided for the allocation of 40% of the tax revenues and capital gains from gas and oil exploitation to the fund, with the remaining 60% to finance the State Budget.

The Mozambican Minister of Finance, Carla Loveira, stated on 29 October that “all the instruments” necessary for the “full operationalisation” of the Sovereign Fund “are ready”, followed by the signing of the management agreement.

“The signing of the management agreement between the Public Treasury and the Bank of Mozambique is in its final phase, which will allow the start-up and full capitalisation of the Fund based on the dictates established by the Sovereign Fund Investment Policy,” said Carla Loveira during the opening of the Coordinating Council of the Ministry of Finance, held in Maputo.

The Government expects to sign this management agreement, the final step of this process, in the coming weeks, according to previous information.

According to Carla Loveira, data referring to 23 October 2025 “illustrate a balance in the transitional account of approximately US$204.5 million”, under gas revenues channelled under the legislation.

“The Sovereign Fund was conceived with the purpose of ensuring good governance, transparency and accountability in the management of revenues from natural resources, preventing their volatile or unproductive use,” Minister Loveira recalled.

Mozambique has three approved development megaprojects for the exploitation of LNG reserves in the Rovuma basin, ranked among the largest in the world, off the coast of Cabo Delgado, including one by TotalEnergies, of 13 million tonnes per annum (mtpa), in resumption phase following suspension due to terrorist attacks in the region, and another by ExxonMobil (18 mtpa), awaiting final investment decision, both on the Afungi peninsula.

Additionally, in this case in ultra-deep waters in the same basin, Area 4, a consortium led by the Italian company Eni, which has operated since 2022 at the Coral Sul floating unit, is now advancing to the second unit, Coral Norte, expected to begin production in 2028.

Source: Lusa