With Mozambique poised to become a top gas exporter, the Union Cabinet today approved signing an agreement with the African nation to deepen oil and gas cooperation.
The Cabinet, headed by Prime Minister Narendra Modi, approved signing of a Memorandum of Understanding (MoU) for cooperation in the field of oil and gas between India and Mozambique for a period of five years, an official statement said here.
Offshore gas discoveries in 2010 in two adjacent offshore blocks have seen the emergence of Mozambique as a significant hydrocarbon rich nation.
"Mozambique is strategically located near India and is ideally suited for bringing natural gas 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," it said.
ONGC Videsh Ltd, Oil India LtdBSE 0.44 % and Bharat Petroleum Corp Ltd ( BPCLBSE 1.22 %) together hold 30 per cent interest in a giant gas field off the Mozambique coast. Gas from the field is planned to be turned into liquefied natural gas (LNG) for export to nation's like India in ships.
"The MoU seeks cooperation in the areas of upstream and downstream oil and gas sector and encourage and promote trade and investment," the statement said.
It also calls for promoting dialogue and consultations between the two sides on information sharing, enhancing capacity-building, including forging closer cooperation between research and training centres and intensifying technology transfer.