The government of Mozambique and US group Anadarko Petroleum are close to reaching an agreement which will allow the start of natural gas extraction operations in the Rovuma basin, in Cabo Delgado province, according to Mozambican daily newspaper Notícias.

The newspaper cited statements by Al Walker, chief executive of the oil company at the end of a visit of the President of Mozambique, Filipe Jacinto Nyusi, to the premises of the US company in Houston, Texas.

The agreement to be signed between the parties will resolve problems relating to contracts and the legal framework, which are critical elements to ensure security for the project and economic value in the long term.

Walker did not mention dates, and recalled that it is also necessary to take into account the uncertainties caused by the low liquid natural gas (LNG) prices on the international market.

Mozambican oil and gas company ENH advised an acceleration of the natural gas extraction process, otherwise the country may miss the opportunity, having set 2016 as a crucial year for establishing solid foundations for the start of operations.

Since the discovery of natural gas in the Rovuma basin, six years ago, US group Anadarko Petroleum has o make a final investment decision, which is the last step before moving ahead with the project. (macauhub/MZ)