Local content

Procurement of goods and services

The Mozambique LNG Project aims to increase its spend with Mozambican-owned and registered companies increasing the national representation in the project’s onshore contracts. The majority of the project's remaining contracts will 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 the 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 defined targets. As such, we highlight everyone's responsibility, and especially Mozambican citizens, to prepare and participate.
• To maximise local content, we anticipate companies will create partnerships with either locally owned or foreign-owned companies to strengthen local capability and capacity competitiveness.
• All companies are expected to comply with, and commit to, maximizing 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 the development of their employees, standards, transfer of best business and operational practices and competitiveness through the project activities.

The opportunity

• Project local business opportunities are mostly for non-oil & gas-specific scopes and there are many opportunities in 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).
• Partnerships can create opportunities for local companies to participate in high-value activities and to 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's 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 a 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 transfer;
  • mentorships;
  • scholarships;
• the establishment or upgrading of any necessary facilities for technical, vocational or commercial work;
• support to local education institutions;
• research and development in Mozambique.