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Rosneft signs agreements on offshore gas field development with Mozambique

The ceremony of exchanging copies of the agreements was held in the Kremlin following the talks between the presidents
President of Mozambique Filipe Nyusi and Russian President Vladimir Putin Mikhail Metsel/TASS
President of Mozambique Filipe Nyusi and Russian President Vladimir Putin
© Mikhail Metsel/TASS

MOSCOW, August 22. /TASS/. Russian state-run oil company Rosneft signed a memorandum of understanding with Mozambique's National Hydrocarbons Company (Empresa Nacional de Hidrocarbonetos E.P., ENH) to develop offshore natural gas fields, a TASS correspondent reported from the signing ceremony.

Rosneft also signed a cooperation agreement with Mozambique's National Petroleum Institute (Instituto Nacional de Petroleo, INP).

In October 2018, a consortium of Rosneft and ExxonMobil signed concession contracts with the government of Mozambique for the exploration and production of hydrocarbons on three offshore blocks.

Besides Rosneft (20%) and ExxonMobil (50%), the consortium includes Mozambique ENH (20%) and Qatar Petroleum (10%).

In late 2015, Rosneft's subsidiary, RN-Exploration, and the ExxonMobil affiliate in Mozambique won a tender for the license to develop the three offshore blocks. The tender was held by the INP.

Rosneft and ExxonMobil received licenses for the blocks: A5-B in the Angoche River basin and Z5-C and Z5-D in the Zambezi delta.

Other agreements between Russia and Mozambique

In all, six agreements and other bilateral documents were signed during President of Mozambiqu Filipe Nyusi's visit to Russia. The ceremony of exchanging copies of the agreements was held in the Kremlin following the talks between President of Mozambique Filipe Nyusi and Russian President Vladimir Putin.

In the presence of the presidents, an agreement was exchanged between the Ministries of Internal Affairs of the two countries, as well as an agreement on mutual protection of classified information between the countries' governments. A memorandum of understanding was also inked between the Ministry of Natural Resources of Russia and the Ministry of Mineral Resources and Energy of Mozambique.

Inter RAO - Export signed a memorandum of understanding on cooperation in the electric power industry with a Mozambican energy company.

President Vladimir Putin said at a meeting with Nyusi earlier on Thursday that Russia is ready to develop relations with Mozambique on all fronts. The Russian leader noted that trade and economic relations of the two countries are still "quite modest," "but [there are] very good prospects, and a very good pace has been gained in recent years."

During the talks, Putin also suggested discussing the developments in the region and other issues. "We are ready for the development of relations between our countries on all fronts," the Russian leader said. He expressed confidence that Nyusi’s visit will give a good impetus to the development of interstate ties.

Putin also noted that the upcoming first Russia-Africa summit, which is to take place in Sochi in October, would coincide with the presidential election in Mozambique. Putin called Mozambique "Russia’s old partner."

Filipe Nyusi's visit to Russia lasts from August 20 to August 23. This is the first official visit of the head of the Mozambique state to Moscow since 1987.