State-owned producer Vietnam Oil & Gas Group, or PetroVietnam, will invest nearly $85m in a Mozambique-based gas project, according to the head of Empresa Nacional de Hidrocarbonetos.
Mozambique national hydrocarbons company CEO Nelson Ocuane told Bloomberg that the company is currently in talks and that his company is also talking to other foreign investors who have shown an interest in the project.
Gas and oil projects have been discovered in northern Mozambique's Rovuma basin as well as in the Pande gas fields in Inhambane province, located nearly 800km north of the capital of Maputo.
Petrovietnam is currently carrying out exploration work in Indonesia, Malaysia, Algeria and Mongolia with plans to penetrate into oil-rich Angola.
Mozambique contains large proven gas reserves but lacks the financial and technical capability to exploit them.