Indian firms likely to invest $6 bn in Mozambique ONG sector

 Sai Nikesh | The Dollar Business Indian oil companies are likely to make an investment of around $ 6 billion in Mozambique’s oil and gas exploration sector. A statement to this effect was made by Dharmendra Pradhan, Indian Minister of State (Independent Charge) for Petroleum and Natural Gas, on Monday, say the reports. The Minister was said to have informed that the State-run Oil & Natural Gas Corporation (ONGC), Oil India Limited (OIL) and Bharat Petroleum Corporation Limited (BPCL), will be investing around $ 6 billion for development of a giant gas field off the Mozambique coast, over the next four years. Besides the development of the gas field, the investments are also focused at converting the fuel into LNG and further exporting to nations like India, the Minister added. The Indian Public Sector Units (PSUs)-ONGC Videsh, OIL and BPCL, have already invested in a gas block, Rovuma Area 1, in offshore Mozambique, which is one of the largest investments of India in any single hydrocarbon asset abroad. The latest statement gains importance in the light of a recent visit by the Union Petroleum Minister to Mozambique on April 9th and 10th , 2015, where the Indian Minister held discussions with his counterpart, Pedro Couto, Minister of Mineral Resources & Energy and also met Baloi, Foreign Minister. During the meeting, both the sides discussed existing investments and further expansion of the same in the oil and natural gas sector. This is in line with the Indian Prime Minister’s efforts on the need for deepening of energy partnerships with the African nations. While laying down a road map for energy security of India on March 27, 2015, during his address at the Urja Sangam, Narendra Modi had called upon the Indian companies to work towards India-Middle East, India-Central Asia & India-South Asia energy corridors and establish gas positions in North America and Africa.    

This article was published on April 13, 2015.