By Ndubuisi Michael Obineme
With major oil and gas projects underway in Mozambique, ENH, the national oil company of Mozambique, has developed several local content initiatives for local companies to benefit from the business opportunities generated by the oil and gas sector.
In an interview with our correspondent, ENH’s Director of Local Content, Victor Tivane, said that local companies encounter several challenges as there is currently no legal framework that addresses local content matters related to exploration and production activities in Mozambique.
According to him, issues concerning Mozambique local content is decentralized at the sectoral level and does not coherently address the local content matter. And these have hindered local companies to benefit from the business opportunities generated by the oil and gas sector.
Addressing these challenges, ENH developed several local content initiatives based on its cordial relationship with the private sector as they strongly believe that supporting local companies will boost the country’s economic and employment opportunities in the oil and gas sector.
“Concerning Local Content, ENH’s 2021 priority plans include Mobilization of Funds for the LinKar Program Operationalization; LinKar Program Operationalization; Participation in Technical Commissions on Local Content with Operators; Local Companies Database consolidation; and Dissemination of the O&G Sector Business Opportunities to the Private Sector,” he added.
The LinKar Program is ENH’s 8-year SME development program which aims to contribute to economic transformation in Mozambique by stimulating productive SME linkages with the evolving oil & gas sector.
He continued: “The LinKar Program will be responsible for driving local value and job creation through the expansion of SME contracting opportunities derived directly from the evolving gas value chain, as well as from new investments targeting key constraints currently hampering the economic growth ambitions from the gas developments.
“The enhanced involvement of Mozambican SMEs will increase the economic and employment multiplier effect in Mozambique deriving from the country’s upstream gas developments. It will work with 500 SMEs to reach required levels of competitiveness with the goal of 125 separate SMEs winning contracts worth a total of US $ 50 million.
“The LinKar Program will be implemented by a credible, independent Mozambican entity, comprising a team of international and national experts.”
In another development, ENH has signed a memorandum of understanding with several business associations existing in the country to exchange information on the current developments in the oil and gas sector and cooperation for the involvement of local companies in the sector.
The company has held several Local Content Seminars and Round Tables since 2017 to disseminate information on the latest developments in the oil and gas sector; Current information on Business Opportunities in the oil and gas sector; Sharing information about international experiences on Local Content, and Exchange of views to maximize Local Content in the oil and gas sector.