The vessel previously operated by the Spanish navy will be renamed the Pebane and will be used in anti-piracy operations.
"The contract represents more than 50,000 hours of work for Navantia and its subcontractors and will employ more than 50 people in the five months that the work is scheduled to take," Navantia said.
Work on the patrol boat began last week.
Navantia will perform the upgrade with ISDEFE, a company belonging to the Spanish Ministry of Defense. ISDEFE will be responsible for managing the training of the Mozambican crew, which will be conducted by the Spanish navy.
"This is the first contract signed with Mozambique by Navantia, which continues to add new customer countries, and is the beginning of the modernization of vessels 'surplus' from the Spanish armada in view of their subsequent export sales," Navantia said.