JEDDAH: ARAB NEWS
Published — Monday 18 February 2013
Last update 18 February 2013 2:44 am
Mozambique is seeking Saudi investment and technical support to develop its oil, gas and mineral sector.
The country’s Mineral Resources Minister Esperanca Bias yesterday held talks with her Saudi counterpart Ali Al-Naimi to explore energy cooperation.
“During the meeting the two sides discussed prospects of cooperation in oil, gas and mineral industry and Saudi investment opportunities in the sector,” an official statement said.
It said Mozambique wanted Saudi Arabia to assist the African country to develop its gas systems, provide training to oil workers and exchange expertise.
Prince Abdul Aziz bin Salman, assistant minister for petroleum affairs, Prince Faisal bin Turki, adviser at the ministry, and other senior officials were also present at the talks.
Mozambique had earlier signed an agreement with Saudi company Radyolla Holding to build a pipeline and a refinery.
The project was first created in 2008, but was suspended due to the economic crisis.
According to information from the Mozambique News Agency, the refinery would help reduce fuel costs in the country.
The president of the Institute for the Management of Stat Holdings in Mozambique (Igepe), Apolinario Panguene, said: “Igepe has identified a range of projects to be implemented jointly with other partners, and Radyolla enjoys the advantage of having sufficient financial muscle to help us carry these projects through.”
Panguene said Mozambique also has six other infrastructure projects in the work.
Radyolla and Igepe will evaluate the project costs, which should be around $ 5 billion.
They will then sign a definitive agreement for implementing these projects, setting a date for the start of construction.
The refinery will be built in Nacala, in Nampula province in the north of Mozambique.
The pipeline will be located in the port of Beira in Sofala province, in the central region.
According to Panguene, the pipeline will benefit other African countries, such as Zambia, Malawi, and the Democratic Republic of Congo.