2.2 - Accessing Energy (Mozambique)

Question 1

How long was the civil war in Mozambique?

Answer 1

• 17 years
• ended in 1993

Question 2

What is the economic state of Mozambique?

Answer 2

• World’s 2^nd poorest country
  
  • 55% live below poverty line
• Economy is growing at 7%/yr (2011-2013)
  
  • young, educated population expected to continue this trend

Question 3

How much gas is in Mozambique?

Answer 3

• 127bn m²
  
  • 4^th largest gas reserve
  • $350bn of potential energy sources

Question 4

How much tax did companies exploiting gas in Mozambique pay in 2013?

Answer 4

$1bn
- as a result of new tax rules on resource sales

Question 5

What is the view of young people in Mozambique over oil exploitation?

Answer 5

• Do not feel that government is doing enough to protect environment
• also feel that contracts are not being issued fairly

Question 6

How much foreign investment in Mozambique oil/gas was predicted?

Answer 6

• $10bn over 3 years
  
  • Portugal, Japan, US, India, UAE, Brazil are all interested
  • investment in oil/gas extraction technology and associated infrastructure

Question 7

How were contracts going to be policed?

Answer 7

• Australian universities provide geologists, geographer, marine biologists, anthropologists
  
  • in order to work with NGOs and judiciary to hold government to account over contracts given to develop local infrastructure

Question 8

How much of its oil/gas has Mozambique exploited so far?

Answer 8

• Only 3.8bn m³
• majority exported to S. Africa
  
  • bad for energy security as very little is used by Mozambique itself
  • not self sufficient

Question 9

What problems are there with Mozambique exploiting its fossil fuel reserves?

Answer 9

• mining companies sometimes don’t stick by conditions eg. Building schools and hospitals
• large amount of corruption within system
• land grabs and forced relocations also happen
• poor working conditions in mines
• creating tension, concerns about when people will fight government if corruption doesn’t end

Question 10

Why might TNCs be deterred from investing in Mozambique?

Answer 10

• takes 3 years for tax and concession agreements to be reached
  
  • these allow TNCs to operate at lower costs in Mozambique
  • however time taken is too long

Question 11

How flawed is the land allocation process allowing TNCs to exploit natural resources?

Answer 11

• 35 000 ha sold to Anadarko
  
  • 7 000 ha used only for infrastructure
  • 11 Mozambique communities had to be relocated
• inefficient and uses a lot of land