From January to September 2025, the budget execution report reveals revenues totaling $24.68 million (€21.4 million) from the Mining Production Tax and $42.96 million (€37.1 million) from ‘Profit Oil,’ representing Mozambique’s share of oil production exceeding the “cost oil”.
Under the law establishing the Mozambique Sovereign Fund (FSM), which will derive 40% of its income from natural gas revenues, the cumulative revenue from 2022 to 2024 amounts to $164.99 million (€142.7 million).
Since 2022, these revenues have reached $232.33 million (€201 million), deposited in the Petroleum and Gas Transitional Revenue Account at the central bank, already paving the way for FSM’s future management pending an agreement with the government, according to the governor.
“Operational preparation for the management of the Mozambique Sovereign Fund, only awaiting the signing of the Management Agreement with the Ministry of Finance,” stated Governor Rogério Zandamela on November 5, highlighting this as a priority among the central bank’s institutional reforms.
Parliament approved the creation of FSM on December 15, 2023, sourcing funds from natural gas exploration projected to reach $6 billion (€5.19 billion) annually by the 2040s.
The fund was established in April of the following year, with legal amendments allocating 40% of the revenues from gas and oil exploration taxes and gains to the fund, and the remaining 60% to support the State Budget.
Mozambique’s Finance Minister, Carla Loveira, stated on October 29 that all instruments necessary for FSM’s “full operationalization” are ready, pending the management agreement’s signing.
“The signing of the management agreement between the Public Treasury and the Bank of Mozambique is in the final stage, enabling the fund’s operation and full capitalization based on the FSM Investment Policy guidelines,” Carla Loveira emphasized at the opening of the Ministry of Finance’s Coordinating Council in Maputo.
The government plans to sign this management agreement, the final step in the process, in the coming weeks, previous reports indicate.
Carla Loveira noted that data, as of October 23, 2025, show a transitional account balance of approximately $204.5 million (€176.8 million) from gas revenue channeled under the legislation.
“The sovereign fund was designed to ensure good governance, transparency, and accountability in managing revenue from natural resources, preventing volatile or unproductive use,” Carla Loveira reiterated.
Mozambique has approved three major development projects to exploit LNG reserves in the Rovuma Basin, among the world’s largest, off Cabo Delgado’s coast. This includes a TotalEnergies project resuming with 13 mtpa after being suspended due to regional terrorist attacks, and an ExxonMobil project (18 mtpa) awaiting final investment decision, both in the Afungi peninsula.
Additionally, in ultra-deep waters within the same basin, Area 4, led by Italy’s Eni, has been operating since 2022 with the Coral Sul floating unit and is now advancing to the second unit, Coral Norte, expected to commence production by 2028.
