Brazil’s Vale and Mozambique’s ENH sign cooperation agreement

1 September 2009

Maputo, Mozambique, 1 Sept – Brazil’s Vale and Mozambican oil and gas company Empresa Nacional de Hidrocarbonetos (ENH) have just signed a memorandum of understanding for technical cooperation and joint development of activities for oil and gas exploration in Mozambique, according to a report in Mozambican newspaper Notícias.

Cooperation between the two companies will be carried out through studies that will evaluate the existence of commercial reserves of oil and gas in unexplored or little explored regions.

Natural gas exploration is one of Vale’s objectives, as part fo its diversification.

Vale is one of the concession holders for coal mining in Moatize, in Tete province, and it is expected that exports will begin in 2011.

The memorandum now signed is the first action by the company with a view to exploring natural gas outside Brazil.

ENH operates in representation of the Mozambican state in research, transport, distribution and sale of hydrocarbon products.

The company also takes part in natural gas exploration projects in Pande, Inhambane province.

ENH recently signed a contract-programme with the government under the terms of which the government will provide all the necessary support to access a total of US$100 million needed for research, production, transport and distribution of hydrocarbon products. (macauhub)