India, Mozambique Sign MoU for Cooperation in Natural Gas Sector

India and Mozambique on Friday signed a memorandum of understanding (MoU) to enhance bilateral cooperation in the field of natural gas oil.

Dharmendra Pradhan, India’s oil minister met with Oldemiro Julio Marques Baloi, Mozambique’s minister of foreign affairs in New Delhi to discuss various areas of mutual cooperation in the energy sector.

Pradhan said that Indian public sector companies have participating interest in Mozambique`s gas fields and sought cooperation from the government of Mozambique in this regard. 

Last month India’s union cabinet, chaired by Prime Minister Narendra Modi, gave its approval for signing of the MoU.

“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 in October. 

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.