South Korea’s Kogas considers leaving natural gas exploration in Mozambique

5 February 2014

South Korean group Kogas is looking into the possibility of leaving its natural gas exploration project in the Rovuma basin in northern Mozambique, due to excessive debt, according to English-language newspaper the Korea Times.

The newspaper said that Kogas was one of 18 South Korean state companies that had excessive levels of debt and that, following a government decision announced Sunday, would have to sell some of its assets and stakes and reduce its budgeted expenditure.

As well as potentially selling its stake in the area 4 block of the Rovuma basin, operated by Italian group ENI as well as having Portuguese group Galp Energia and Mozambican state group Empresa Nacional de Hidrocarbonetos as partners, Kogas may also have to leave projects in countries such as Australia, Canada, Iraq and Uzbekistan. (macauhub)