The governments of Mozambique and India Sunday in New Delhi signed a memorandum of understanding for cooperation in the oil and gas sector, according to a statement from the Indian government.

The agreement, which will be valid for five years, was signed in New Delhi by the Indian Oil Minister, Dharmendra Pradhan, and the Mozambican Foreign Minister, Oldemiro Baloi, on an official visit to India.

The memorandum, which was approved by the Indian government on 29 October, provides for closer cooperation between research centres of the two countries, increasing training and technology transfer.

“Mozambique is strategically located close to India and has ideal conditions to provide natural gas to India at prices determined by the market,” Pradhan said in the statement, noting that Indian companies were involved in gas exploration in northern Mozambique.

Indian state companies ONGC Videsh, Oil India and Bharat Petroleum Corp own 30 percent of block 1 of the Rovuma Basin, led by US company Anadarko Petroleum, in the offshore area of northern Mozambique.

ONGC Videsh, an ONGC group company for international business, for example, has already spent more than US$5 billion to buy a 20 percent stake in the Area 1 block, and is responsible for at least another US$3 billion more so that the consortium can start processing and liquefaction of natural gas for export to consumer markets. (macauhub/MZ)