The Indian government has offered to build factories for oil and chemical products in Mozambique provided that the energy they need is provided at a subsidised cost, an Indian official said in New Delhi cited by The Economic Times newspaper.
“We said that our state companies are available to install urban gas distribution systems, fertiliser factories and oil derivatives and chemical factories if the gas needed to supply those projects was provided at the right price,” said the newspaper’s source.
The Indian official spoke to the newspaper after Indian oil minister, S Jaipal Reddy met with Mozambique’s deputy Natural Resources Minister, Abdul Razak Noormahomed, on the sidelines of the Petrotech 2012 conference in New Delhi.
The companies with oil and gas prospects in Mozambique have so far discovered 130 trillion cubic feet of natural gas. Two Indian companies – Bharat PetroResources and Videocon Industries – each have a 10 percent stake in the block operated by US company Anadarko Petroleum.
Noormahomed said in New Delhi that the Mozambican government would auction off 12 further oil and gas blocks in mid 2013. India’s Oil and Natural Gas Corp (ONGC) and Oil India Ltd are expected to put forward proposals for the auction.
The Indian official also said that it was easier to import urea than gas, and that this was why companies were interested in setting up fertiliser factories in Mozambique. The companies interested in doing include Rashtriya Chemical and Fertilizers Ltd, which announced plans to invest US$2 billion in building a factory in Mozambique to produce 1.2 million tons of urea and 650,000 tons of phosphates per year. (macauhub)