Local content

Procurement of goods and services

The Mozambique LNG Project is targeting a spend of $2.5 billion with Mozambican-owned or registered companies. This represents more than one third of the project’s onshore contracts. The majority of remaining contracts focus on highly specialized, technical goods and services that cannot currently be sourced in the country.

The partnership between the project and the government of Mozambique focuses on increasing the competitiveness of local companies to maximize local participation opportunities. Together, we are:

1. Increasing visibility of Mozambique capacity for better dissemination to interested parties
2. Sharing best practices, opportunities and challenges to maximize local content
3. Aligning the project's local content opportunities with the long-term vision of the country
4. Monitoring and, where possible, maximizing the project's local content performance
5. Considering a number of broader capacity building initiatives to support the Mozambican supply chain

Nevertheless, interested participants should be aware that:

Success will depend on Mozambican active participation

• Mozambique, including the project relies on the Mozambican market to achieve targets. As such we highlight everyone's responsibility and especially Mozambican citizens to prepare and participate
• To maximize local content, we anticipate companies to create partnerships with either locally owned or foreign owned companies to strengthen local capability, capacity competitiveness.
• All companies are expected to comply with, and commit to, maximize local content as part of their in-country activities; note that performance will be monitored by the Mozambique regulatory entity (INP).
• We are encouraging the participation of champions that continue to demonstrate growth through development of its employees, standards, transfer of best business and operational practices and competitiveness through project activities

The opportunity

• Project local business opportunities are for the most non-oil & gas specific and there are many opportunities on support-related areas.
• Mozambique LNG's large supply chain will provide the majority of local business opportunities. Contractors and subcontractors are already prospecting for local subcontractors. Local companies are encouraged to register with ACHILLES (supplier registration platform).
• Partnership can create opportunities for local companies to participate in high-value activities and build capacity.
• Local companies will be given preference but shall be competitive and meet project requirements in regard to PLANNING, QUALITY, QUANTITY and COST.
• Training beneficiaries will be selected on their experience, professional project and motivation.

The Local Content preference

Local content is playing a critical role in the selection of the Mozambique LNG project contractors. As part of the competitive bid, preference is given to

• Mozambican SMEs providing goods, materials, services and equipment available in the Republic of Mozambique, with the following priorities:

• Employment of Mozambican citizens from the Afungi Peninsula and the district of Palma directly impacted by the Project.
• Technology transfer & capacity building programs which includes all activities and mechanisms aimed at maximizing knowledge and skills transfer to the Government, Mozambican companies and national citizens, including, but not limited to-

• encouraging and facilitating the formation of joint ventures and partnerships; and
• the development of technology licensing agreements between Mozambican companies, national citizens and foreign companies;
• the establishment in Mozambique of management and technical capabilities such as, but not limited to-
  • local supplier development programs aimed at building capacity at national and community level;
  • internships and attachment of national citizens in petroleum activities;
  • support to any industry enhancement centre including health, safety environment and quality standards;
  • support of existing institutions in Mozambique by providing knowledge and technology;
  • mentorships;
  • scholarships;
• the establishment or upgrading of any necessary facilities for technical, vocational or commercial work and technology transfer;
• support to local education institutions;
• research and development in Mozambique