India and Mozambique sign MoU for cooperation in oil & gas sector
India and Mozambique have signed a memorandum of understanding (MoU) for cooperation in the oil and gas sector for a period of five years.
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 centres and intensifying technology transfer, among others.
The MoU was signed at a meeting held at New Delhi between Petroleum Minister Dharmendra Pradhan and Mozambique’s Minister of Foreign Affairs Oldemiro Julio Marques Baloi.
Background
Earlier, Union cabinet had given their nod on 29th October 2014 for the MoU between both countries.
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 tonnes of LNG annually from its biggest gas field – the Rovuma Area 1 offshore block of Mozambique.
State-run ONGC Videsh Ltd, Oil India and Bharat Petroleum Corp already have bought 30 percent stake and will also participate in the LNG project.
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Month: Current Affairs - November, 2014