Energy Agreements on Agenda During PM Modi's First Africa Visit

Securing long term energy agreements will be Indian Prime Minister Narendra Modi's primary objective during his first trip to Africa.

Modi will be visiting Mozambique, South Africa, Tanzania and Kenya from July 7-11.

With the slowdown in China that has resulted in the reduction of energy and raw material imports, the African continent is looking at India to buttress its export revenues, sources told BusinessLine, a financial daily.

“We want to cash in on the Chinese absence. Mozambique is purely focused on obtaining gas and securing sizeable contracts,” a top official said, adding that a MoU may be signed in this regard.

Amar Sinha, Secretary (Economic Relations), Ministry of External Affairs (MEA) said focus will mainly be on energy during Modi’s visit to Mozambique.

Indian state owned energy firms already own significant stakes in Mozambican gas fields. ONGC Videsh (OVL) along with Oil India bought 10 per cent stake in Mozambique Area 1 gas asset from Videocon Industries for $2.48 billion in June 2014. OVL acquired another 10 per cent stake in the field from Anadarko Petroleum Corp for $2.64 billion. Another state owned firm BPCL also holds 10 percent stake in an offshore gas asset.

From Mozambique, Modi goes to Tanzania, where again he will be pushing for signing long-term contracts on gas imports, BusinessLine reported.