The potential opportunities for North Sea oil and gas companies in Mozambique and the surrounding region could be significant, according to a leading expert.
Dr Leon Moller, from Robert Gordon’s University, spoke to Energy Voice as the Scottish Secretary of State David Mundell visited the country.
Press and Journal Westminster Correspondent Lindsay Watling has been reporting from the visit which is hoped could create lasting ties between the oil capital of Europe and the Southern African country.
Mundell has met with business figures and politicians to promote Aberdeen and drive forward a trading partnership between Aberdeen and Pemba.
Dr Moller said: “I think it’s going to have huge benefits for the industry moving forward. I think Mozambique is quite a stable country and they’re also quite keen to align themselves with Aberdeen.
“The President of Mozambique visited Aberdeen two years ago where he met with business people here.
“They’re keen to learn from Aberdeen and its move from a fishing industry to oil and gas.
“There are a lot of lessons which can be learnt from Aberdeen and used in these countries.
“Moving into a region like Mozambique also gives countries close proximities to other countries like Namibia and Angola and Asia also.
“The lower oil price is also attracting companies to the region because it’s cheaper labour and also it’s cheaper living conditions than in place like Aberdeen. It’s cheaper to do business.”
When developed, Mozambique gas reserves are expected to have the potential to transform the country’s fortunes.
The country’s government is looking to ensure local enterprises and local population will also play a significant role in the industry.
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Mundell has visited Mozambique alongside Aberdeen City Council director Gordon McIntosh, who previously said now was the time to prepare for moving on once the oil price returned to a more stable position.
The two cities hope to sign a formal memorandum of understanding later this year, underpinned by an action plan.
Funded by £120,000 from the Foreign Office, it will support Pemba develop into a gas hub based on the Aberdeen model.