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India and Mozambique ink oil and gas collaboration agreement

28th November 2014

A memorandum of understanding (MOU) between India and Mozambique was signed today bwteen Shri Dharmendra Pradhan, India’s minister for petroleum and natural gas, and Oldemiro Julio Marques Baloi, Mozambique’s minister of foreign affairs, in New Delhi

India and Mozambique ink oil and gas collaboration agreement
India has rapidly growing energy demand whilst Mozambique, which is a relatively close supply source, has made large gas discoveries in the last three years

During the meeting, an MOU was signed between India and Mozambique on cooperation in the field of oil and gas for five years.

The objective of the MOU is to enhance bilateral cooperation on the basis of equality and mutual benefit, said the Indian petroleum industry in a statement.

The two sides discussed various areas of mutual cooperation in the energy sector, according to the statement.

Shri Pradhan said that both the countries have traditional links which have grown from strength to strength over the years.

He added that Indian public sector companies have participating interest in Mozambique's gas fields and sought cooperation from the Government of Mozambique in this regard.

India has rapidly growing energy demand whilst Mozambique, which is a relatively close supply source, has made large gas discoveries in the last three years, with Eni preparing engineering design work for an industry-leading FLNG (floating liquefied natural gas) facilities to be position off the coast.

"Mozambique is strategically located near India and is ideally suited for bringing natural gas to India at market determined price," said an Indian government statement.

"Participation of Indian energy companies in the project will facilitate access to LNG for the growing Indian gas market."

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