31st Mar 2014 14:46
LONDON (Alliance News) - Sacoil Holdings Ltd Monday said it has entered into a memorandum of understanding with the Instituto De Gestão Das Participações Do Estado, an entity that manages investment portfolios and shares on behalf of the Government of the Republic of Mozambique, and The Public Investment Corporation Ltd.
Sacoil shares jumped 12.7% or 0.46 pence Monday afternoon, trading at 4.03 pence per share.
The South Africa-based independent African oil and gas company, said the memorandum of understanding builds on the expression of interest with an investment manager for the Mozambique government to look into gas distribution opportunities in southern Africa.
It said the memorandum of understanding is intended to regulate the relationship between the parties with regard to: opening up and growing the industrial and domestic consumer market for natural gas across Mozambique; establishing joint venture companies to build an onshore natural gas central processing facility; and establishing ancillary projects such as a gas-to-liquid plant and a combined cycle gas power plant.
Sacoil said that it will update its shareholders as and when new developments occur.
"The board of Sacoil has provided shareholders with all information relating to the entering of the MoU and accordingly shareholders are advised that they no longer need to exercise caution when dealing in the company's securities," the company said in a statement.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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