11 Jul Interview with Dr. Hélder Chabisse, CEO of Petróleos de Moçambique (Petromoc)
How would you describe the current state of Mozambique’s energy sector and what recent trends have you noticed?
The outlook for the energy sector is promising. The current focus is on unlocking the country’s energy potential and expanding access to energy for most of the population. This involves significant investments in infrastructure across all subsectors, including energy generation, transport and oil and gas exploration. As a downstream company, our role is to ensure the efficient distribution of fuels nationwide.
The state plays a crucial role in this sector, providing strong regulatory frameworks that ensure stability, transparency and sustainability for all stakeholders. The government is also actively encouraging both domestic and international investment. This is important because the sector requires a lot of capital.
Another key trend is the ongoing energy transition. Although Mozambique is still in the early stages, the shift towards clean energy is evident, with increasing investments in solar and other alternative energy sources. This transition is a priority for both the government and industry leaders. We are focusing not only on exploration, such as our liquefied petroleum gas (LPG) and gas-to-liquid projects — where the LPG production plant is in its final stages — but also on new opportunities in the northern regions to improve sustainability. It’s not just about integrating clean energy into our portfolio; it’s about ensuring that these energies are accessible to our market and implementing this in the right way to guarantee reliable access. Overall, Mozambique is making progress in using its energy potential to increase energy access and stimulate economic growth and development.
Could you provide an overview of Petromoc’s journey since it was established, including its mission and the key goals it seeks to achieve in Mozambique?
Petromoc has been a major force in Mozambique’s fuel market for 47 years and is now the leading fuel supplier in the country. We operate a network of over 200 service stations and serve more than 100 major customers across various sectors, including mining, agriculture, transport and both private and public enterprises. Holding about 30% of the market share, we supply over 118 million gallons of fuel annually.
Over the years, Petromoc has faced significant changes driven by domestic and international market dynamics. Since Mozambique does not produce refined fuels, we rely entirely on imports, making us vulnerable to global price fluctuations and logistical challenges, such as those caused by the Russian-Ukrainian war. This dependency has occasionally led to volatility in our profitability. For instance, when international prices rose but domestic prices remained stable to prevent economic strain, we had to cover the price gap through bank debt, resulting in increased financial costs and losses. In response, we have implemented several reforms within the company and the broader market, including more flexible pricing adjustments and strategic changes aimed at improving efficiency. These efforts have enabled us to pay off significant bank debt, reverse declining sales trends and stabilize our financial position. Our market share, which had dropped to around 23%, has now returned to approximately 30% thanks to a customer-focused strategy that promotes sustainable growth.
Despite operating in a highly competitive market with over 30 registered fuel distributors, some of which do not adhere to regulations, Petromoc has successfully turned its situation around. Today, we are in a stable financial position with positive net results and a sustainable increase in sales. We look to the future with optimism and confidence in our ability to maintain our leadership and navigate ongoing challenges.
Could you provide details on the exploration and production projects in which Petromoc is currently involved within Mozambique?
Petromoc primarily focuses on midstream and downstream activities rather than exploration. In the midstream sector, we are mainly involved with natural gas condensates, which we source in collaboration with Sasol. We acquire these condensates and manage their export for further processing.
We are also involved in an LPG project with Sasol and Empresa Nacional de Hidrocarbonetos (ENH) where we oversee the collection and transportation of gas to consolidation points. While we do not directly engage in exploration, we continuously seek new opportunities within our midstream and downstream operations. For upstream activities, we partner with ENH, which manages exploration projects in collaboration with the state. This partnership allows us to stay connected with exploration efforts without directly participating.
What opportunities do you see for US-investors in Mozambique’s energy sector?
I view Mozambique not as an isolated market but as part of a strategically important region. Mozambique acts as a gateway to Southern Africa, which includes 14 countries and over 200 million people, with an average economic growth rate of 3% to 4%. This dynamic region offers significant opportunities for investors.
Southern Africa is rich in mineral resources and while our priority is local transformation and job creation, there are numerous opportunities for foreign investors to add value. The energy sector, in particular, holds promising prospects, including energy generation and the exploration of oil and gas resources.
We currently have ongoing projects in both the southern and northern parts of Mozambique, as well as exploration activities along the Atlantic coast. Refining is also a valuable investment opportunity since the region is a net importer of fuels. With the right investment and interest, Southern Africa holds vast potential for growth and development.
Could you describe the recent innovations and technological advancements that Petromoc is implementing?
Petromoc is actively contributing to the energy transition, even though fossil fuels remain dominant and will continue to play a significant role for some time. We are advancing several key initiatives to support this transition. One major focus is on promoting the use of LPG. We are working with the government and other stakeholders on a program to expand the use of cooking gas. This includes installing gas cylinder filling lines across the country to replace traditional biomass sources like charcoal and firewood, which many people still use for cooking. We want to reduce reliance on biomass and increase the adoption of cooking gas.
Another important initiative is our effort to incorporate biodiesel into our liquid fuels. This helps lower import costs and reduces environmental impact by cutting down on fossil fuel use. Looking ahead, while we don’t have concrete plans yet, we are considering the local refining of crude oil as a potential future project. This would help decrease our dependence on imported refined fuels.
What social responsibility initiatives is Petromoc currently developing and how does the company contribute to community development in Mozambique?
At Petromoc, our primary goal is to stimulate economic activity across various regions of Mozambique. Of our 200 supply points, more than half are located in rural areas. This network is vital for fostering economic development in less populated and disadvantaged regions, where access to fuel is essential. By providing fuel, we enable local businesses to operate, which generates employment and improves community well-being.
To maximize impact, we collaborate closely with the government to position these supply points in underserved areas. This approach not only supports local economic activity but also attracts domestic investment. It encourages the establishment of small and medium-sized enterprises, further improving job creation and community welfare.
Additionally, our network prepares these regions for potential anchor projects, such as large-scale developments in the north. By nurturing a supportive ecosystem of small businesses, we aim to ensure that these major projects benefit local communities, distribute income more broadly and help reduce regional inequalities.
Looking ahead 5 to 10 years, what are Petromoc’s key priorities for long-term growth and development?
Over the next 5 to 10 years, Petromoc plans to solidify its position in the local market while expanding its regional presence. We are committed to maintaining a 30% market share by continuing to invest in our network of gas stations, storage infrastructure and key ports throughout Mozambique.
Beyond our national borders, we see the strategic importance of the Southern African region. We intend to enhance our role in fuel transit and trading across the region. As regional food consumption rises and economic activity grows, particularly in emerging markets like Zimbabwe, Botswana, the Democratic Republic of Congo, Zambia and South Africa, we believe there is significant potential for expansion.
To achieve this, we will invest in critical infrastructure, including ports such as Maputo, Beira and Nacala and develop fuel transportation networks. By strengthening these connections, we aim to become a key player in the regional fuel market and drive our long-term growth.
We welcome American investors to view Southern Africa not just as a source of resources, but as a promising market where they can create significant value for their investments while contributing to the development of the region and its people. We are eager to engage with investors who share this vision and are ready to explore the vast opportunities available in Southern Africa.