Mozambique is signing exploration agreements that could see investments totalling US$700 million for the country’s gas sector.
The government has already signed agreements with US power company Exxon Mobil and Russian energy corporation Rosneft, according to a Reuters report, with similar deals to be signed with South Africa’s Sasol and Italy’s Eni.
The energy firms are expected to drill at least 10 wells – eight in deep water and two onshore.
In 2014, Mozambique’s state-owned hydrocarbon company Empresa Nacional de Hidrocarbonetos announced plans for a US$30 billion natural gas investment, involving the development of the northern ports of Pemba and Palma. It was reported that the financing would be used to increase capacity, resulting in the production of 20 million tons of liquefied natural gas a year, with first exports due to start this year.
