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Sovereign Fund To Manage Mozambique’s LNG Riches Takes Shape

  • Draft law revises fund’s allocation of oil, gas revenue
  • Islamic State-linked violence has held up giant gas projects

Mozambique has trimmed the proportion of revenue it intends to direct toward a sovereign wealth fund that’s being set up to help manage an estimated $96 billion expected to flow from its fledgling natural gas industry, a draft law shows. 

The state will channel 40% of total oil and gas revenue to the fund for the first 15 years, and 50% thereafter, according to a copy of the unpublished bill seen by Bloomberg. A 2020 outline of how the fund would work stated that the gas revenue would be evenly split between the government and the fund for the first two decades, whereupon the fund’s share would increase to 80%.