India Looks to Deepen Cooperation With Mozambique in the Field of Oil, Gas

India has taken another step in its effort to deepen cooperation with Mozambique in the field of hydrocarbons.

The union cabinet, chaired by Prime Minister Narendra Modi, on Wednesday gave its approval for signing of a Memorandum of Understanding (MoU) for cooperation in the field of oil and gas between the two countries for a period of five years.

“Mozambique is strategically located near India and is ideally suited for bringing natural gas to India at market determined price. Participation of Indian energy companies in the project will facilitate access to LNG for the growing Indian gas market,” the government said in a statement. 

Offshore gas discoveries in 2010 in two adjacent offshore blocks have seen the emergence of Mozambique as a significant hydrocarbon rich nation. 

Indian state owned energy companies BPCL, OVL and Oil India already own significant stake in gas field offshore the East Africa nation.

OVL along with Oil India bought 10 per cent stake in Mozambique gas asset from Videocon Industries for $2.48 billion in June last year. OVL acquired another 10 per cent stake in the field from Anadarko Petroleum Corp for $2.64 billion. 

BPCL also holds 10 percent stake in an offshore gas asset.