India’s Oil Minister visits Mozambique

9 April 2015

The Indian Oil Minister, Dharmendra Pradhan, will make a three-day working visit to Mozambique, where he will be accompanied by a business delegation organised by the Confederation of Indian Industry (CII), the Indian press reported.

The Financial Express newspaper, for example, reported that the minister’s visit is intended to ensure that contracts involving Indian companies that have invested billions of dollars in Mozambique are finally completed.

The newspaper added that the investments made by ONGC Videsh (OVL), Oil India Ltd (OIL) and Bharat PetroResources in concession Area 1 in the Rovuma basin have been at a standstill, as contracts for exploration and production have not yet been signed.

OVL, a subsidiary for the ONGC group’s foreign operations, established a 60/40 partnership with the state group OIL to buy the 10 percent stake owned by private Indian group Videocon Industries for US$2.475 billion.

Later, OVL acquired a 10 percent share of the same gas field from US group Anadarko Petroleum for US$2.64 billion dollars.

In November 2014, the Mozambican Foreign Minister, Oldemiro Baloi visited India, where he signed a memorandum of understanding for joint cooperation in the oil and gas sector. (macauhub/MZ)