India plans to cooperate with Mozambique in the oil sector

30 October 2014

The Indian government Wednesday approved the signing of an agreement with Mozambique to boost bilateral cooperation in the oil and gas sector, according to a statement issued after a cabinet meeting.

The statement added that the memorandum of understanding (MoU) to be signed with the government of Mozambique includes two-way cooperation in that sector for a period of five years.

“Mozambique is strategically located near India and is a clear source of natural gas at market prices,” said the statement cited by the Press Trust of India.

ONGC Videsh and Bharat Petroleum Corp Ltd (BPCL) have a combined share of 30 percent in the Area 1 block, operated by US group Anadarko Petroleum, where huge deposits of natural gas were discovered.

The statement also said that the MoU aims to promote cooperation both downstream and upstream from the extraction of oil and gas itself and to encourage and promote trade and investment.(macauhub/MZ)