Cost Recovery Audit for the Rovuma Basin Projects, Mozambique

Contracted to conduct auditing operations for Area 1 and Area 4 of the Rovuma Basin - Mozambique. These license areas have yielded very significant, world class natural gas resources following exploration programs conducted by the Operators associated with each Area. These projects are now moving from the Exploration and Appraisal Phase to Development. 

The auditing assignment included: 

1. Implementation of a comprehensive independent audit of costs designed to ensure that costs associated with production operations were in line with Fair Market Values 
2. Validation of all Recoverable Costs claimed to ensure they were in accordance with the definitions and accountancy procedures included in each Area’s Production Concession Agreement. In addition, the year of claim was also clarified 
3. Assessed the consequences of any deviations identified in audits1. And 2. on tax eligibility, uplift and cost recovery entitlements. Highlighted areas of significant deviation and projected the expected state revenues and impacts over each Project’s life.
4. Developed and implemented a capacity building program for a selected team of personnel from government institutions involved in this subject. This was designed to provided them with insight on key issues and direct exposure to these issues through on the-job-training