NEW DELHI: External Affairs Minister Dr S Jaishankar's ongoing visit to Mozambique could lead to talks over the resumption of operations of the ONGC Videsh-led offshore gas project.
Jaishankar is currently in Mozambique -- the first visit by an Indian External Affairs Minister after 2010 -- and will meet his counterpart Veronica Macamo. He will also meet members of the Indian diaspora and representatives of the Assembly of Mozambique.
One of the expectations from this trip is the resumption of the gas project that had to stop operations due to the insurgency.
“We hope that the minister's visit gives it a much-needed push. There is optimism that he could bring this up during discussions," said a source.
The ONGC Videsh-led consortium's $20 billion ‘Offshore Area 1’ project has been under force majeure since April 2021 following attacks by Islamic State terrorists in the coastal town of Palma in Cabo Delgado province.
Total E&P Mozambique Area 1 Limitada, a subsidiary of TotalEnergies, holds a 26.5% stake in the plant.
Force majeure is a clause that allows removal of liability for natural disasters and catastrophes created by humans.
Three Indian public sector undertakings hold a 30 per cent stake in total in the project. ONGC Videsh holds 16 per cent, while BPRL Ventures Mozambique BV, a subsidiary of BPCL, and Oil India Ltd hold 10 per cent and 4 per cent respectively.
Meanwhile, trade in local currencies is also expected to be discussed as India is already trading in the rupee with a few countries in Africa like Nigeria and Tanzania.