The French Development Agency and the Development Bank of Southern Africa have agreed to provide a loan worth USD100 million to the Mozambican Hydrocarbon Co., or CMH.
The funding agreement, according to the Mozambique News Agency, will allow CMH to participate in an oil exploration project and tap natural gas deposits at Pande and Temane in the southern province of Inhambane.
South African company SASOL holds 70 percent of the shares of the gas project. CMH, which has a 25 percent share, represents Mozambican participation, whereas the International Finance Corp. holds the remaining 5 percent share.
Given the expansion of the project, oil production is expected to increase three times by 2012.