Oil & Gas

Getting the best service into Afungi as from any product, whether that is the smallest nut or the biggest earth mover, has to be a priority for any business operating in the oil, gas or mining sectors. We provide a nationwide service that ensures that our customer gets value for money. We do this by ensuring you receive the correct product, built to the correct specification and on budget. We are reliable, honest, diligent, conscientious and above all: efficient. With extensive contacts throughout the world we are able to source every item of material or equipment your company may need and fulfil any requirement.

→   Oil and Gas Procurement Processes  

The key business drivers of procurement optimization are cost and risk reduction—via standardization of processes; profit growth through cost savings; and better management of existing inventories.

While these drivers are arguably applicable to all industries, oil and gas procurement processes are decidedly different from other industries. For one, the difference is manifested in the uniqueness of the industry’s tangible assets (rigs, wells, pipelines, separators, etc.). For another, it is also evident in the industry’s intangible assets (business practices, processes, organizational structure).

In fact, the oil and gas industry’s unique organizational characteristics directly

 affects the design of procurement processes and the deployment of asset management systems.

In some oil and gas companies, a dysfunctional relationship exists among core operational units—between operations, supply chain, accounting, and information technology. This latent dysfunction is evident in common organizational disorders: poor communication between departments; a lack of data sharing across departments; the absence of policies, controls, and standardized business processes; and the absence of utilization and integration of technology.

Not surprisingly, these symptoms can have a direct negative impact on the effectiveness of the procurement function.

Best Practices in Process Optimization

To solve the unique challenges of hydrocarbon supply chain management, oil and gas companies should take an integrated approach that focuses on three key components:

• Processes – Having defined procurement processes and controls in place to guarantee optimal execution and accountability throughout the enterprise.
• Data – Ensuring data is high-quality, consistent, and flows seamlessly among departments and processes without bottlenecks or gaps.
• Technology – Deploying procurement systems to enable enterprise asset tracking; equipment tracking; and integration of cost, budget, and price data.

→   Assisting the Drilling Business 

Despite the harsh environment e remoteness, we source reliable equipment with full site support in Cabo Delgado or elsewhere in Mozambique. Sourcing  suited to strengthen the bottom line of drilling companies  for oil and gas, particularly in the field of drilling surface equipment. 

Reaching  top brands to bring you superior equipment at reasonable prices, below a full selection of tools for drilling:

• Draw-works, from complete systems to spare parts, including
• Crown Blocks
• Hook Blocks
• Swivels
• Rotary Tables
• De-sanders
• Shale Shakers
• Mud Pumps & Systems
• Rotary Drilling and Vibrator Hoses

• Unions, including
• Non Aligned Screwed Unions (RON)
• Quick Unions
• Swivel Unions
• Pumping units
• Blowout Preventer’s and Manifolds of all types
• Hydraulic Control Units
• Cementing and Fracturing Units
• Drive Motor

• Gear Box
• Polished Rod
• Grape-Elevator
• Belt Cover
• Stuffing Box
• Crank
• Counter Weights
• Pigman Arm
• BCP

When it comes to the specific needs of the drilling industry, the know how and our experienced collaborators team will yield favorable results for your company. Our strong relationships with suppliers across Africa and the Middle East give you a large selection of products to choose from.

• Hoses and Fluid Handling
• Hose Fittings
• Pipe Fittings and Flanges
• Pipe and Tubular Products
• Separators and Filters
• Gauges and Meters
• Pipeline accessories

• Generators
• Marine Services
• Steelworks
• Safety Equipment
• Personal Safety Equipment
• Coatings, resins, paints
• Compressors

• Lighting and Electrical Products
• HVAC Equipment and Supplies
• Subsea Pipes and Fittings
• Non Corrosive Fittings
• Stainless Steel Fittings
• Stainless Steel Pipe

* Lathes

* Mills

* Drills

* Shaping machines

* Boom Truck Crane

* Telescopic Crane Loader

* Manlift Equipment

* Offshore Cranes

* Earthworks equipment

* Handling Equipments

* Engines & Compressors

* Steam Turbines

* Gas Turbines

* Forced Lubrication Systems

* Ignition Systems

* Controls & Automation Components

→    Helping the Gas Engineering 

The equipment needed must be high-performance, reliable and safe at Serviços Moçambique, we source and reach top brands  to order a long list of on/site solutions. 

• Surface
• Oil Equipment
• Drilling

• Valves, Actuators, Regulators
• Pipes
• Fittings

• Gaskets
• Fasteners

In addition to making sure you have the equipment necessary, we also negotiate pricing and monitor the quality of our vendors and partners.

→   Aiding the Petrochemical Industry 

Our team is specialized in procurement for oil and gas companies in the power sectors, including the petrochemical industry. We seek to keep abreast of all advances to help your company reduce operating expenses and stay on top of any changes in specifications and regulations. Our specialists regularly deal with solutions looking to increase efficiencies and improve your revenue stream. We look to improve your operational flexibility at every step of the supply chain.

Several years have passed since the approval of the legislation that currently regulates the oil and gas sector and since then the Mozambican Government has been focused on improving its capability of providing the necessary assistance to those operating in this sector and carrying out the also important supervision, reviewing the powers granted to the public institutions and approving the template of the Oil Prospection and Exploration Agreement that shall be entered into between the Government and the concessionaires. 

The Constitution of Mozambique provides that all-natural resources, whether located on/in land, underground, inner waters, territorial sea, and the continental platform or in the Mozambican exclusive economic area are the property of the State. The Ministry of Natural Resources is responsible for directing and executing the governmental natural resource policies and for the supervision of the National Petroleum Institute  (“Instituto Nacional de Petróleo” – “INP”), which is  the regulatory authority responsible for the administration and promotion of Petroleum Operations.

Among other state entities that play regulatory and supervisory roles, the State participates through the national oil company “Empresa Nacional de Hidrocarbonetos, E.P.” (“ENH”), and any investor wishing to explore Mozambican oil resources must associate with ENH.  Therefore, ENH participates in all phases, from research to production, refining, transportation, storage and commercialisation of oil and gas and their derivatives, including LNG and GTL, both in and out of the country.

The current available general legal framework is silent in respect of the specific regulation of LNG facilities. Only Mozambique’s Special Regime for Natural Gas Liquefaction Projects in Areas 1 and 4 of the Rovuma Basin (Decree-law 2/2014, December 2) – which applies to concessionaires under existing EPCCs – regulates any special purpose vehicles (“SPVs”) established by such concessionaires and any persons entering into contracts with concessionaires or SPVs (contractors, financiers and employees) as well as their subcontractors, and in connection with activities relating to the development and operation of Offshore Areas 1 or 4 and which are undertaken under existing EPCCs or any other contracts with the Government of Mozambique.

The Petroleum Law Regulation has recently been amended to include changes relating to the Stock Exchange and the public bids to be carried out by the concessionaires. In order for foreign legal entities to be holders of the right to carry out Petroleum Operations, they must be registered in Mozambique and demonstrate that they have the technical capability and adequate financial resources for the effective conduction of Petroleum Operations.

Legislation in Mozambique typically focuses on local content by being prescriptive regarding the procurement of local labour, services and goods. At a base level, local content is to be encouraged by the contractor (and in some cases subcontractor), but no minimum percentage is prescribed. While at the top end, local content is prescribed by law with minimum percentages for goods and services and local employment requirements.

In the context of the acquisition of goods or services by Petroleum Operations right-holders, single or collective foreign entities that provide services related to Petroleum Operations must associate with single or collective Mozambican entities. Procurement has become a target for regulation and this does pose significant problems for multinational companies doing business. We understand those regulations and safeguards that governments put in place and help purchasers to import material and equipment legally and efficiently.