Offshore gas discoveries in 2010 in two adjacent offshore blocks have seen the emergence of Mozambique as a significant hydrocarbon rich nation.
This MoU seeks cooperation in oil and gas in both upstream and downstream sectors in the areas of enhancing capacity-building, forging closer cooperation between research and training centers and intensifying technology transfer, among others.
The MoU was signed at a meeting held in New Delhi on Nov. 28th, 2014 between Petroleum Minister Dharmendra Pradhan and Mozambique’s Minister of Foreign Affairs Oldemiro Julio Marques Baloi.
During the ceremony, Pradhan pointed out that “both the countries have traditional links which have grown from strength to strength over the years”.
Last October, India’s union cabinet, chaired by Prime Minister Narendra Modi, gave its approval for signing of the bilateral accord. At the time the government commented, "Mozambique is strategically located near India and is ideally suited for bringing Liquefied natural gas (LNG) to India at market-determined price. Participation of Indian energy companies in the project will facilitate access to LNG for the growing Indian gas market. This project plans to produce 34 million tons of LNG annually from its biggest gas field – the Rovuma Area 1 offshore block of Mozambique."
Three Indian companies - State-run ONGC Videsh Ltd (OVL), Oil India and Bharat Petroleum Corp (BCPL) - have a combined thirty per cent stake in Offshore Area 1 in the Rovuma Basin, off the coast of the northern Mozambican province of Cabo Delgado, where US company Anadarko is the operator.
It is estimated that over 70 trillion cubic feet of natural gas could be recovered from this concession. Huge amounts of gas have also been found in Area 4 by the Italian operator ENI.
Analysts expect that LNG production in Mozambique will begin in 2019 and will increase rapidly over the following years.
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