Mozambique signs a contract on oil exploration with Russian oil company Rosneft and U.S. energy company, ExxonMobil.

The agreements could lead to as much as $700 million of investment. Companies plan on drilling a minimum of ten wells, eight of which are offshore.

Previously Mozambique announced its government debt had reached 88 per cent of the country’s Gross Domestic Product in 2017. The country plans to tap into its oil and natural gas resources and invest nearly $30 billion in oil and gas sector. Thus, it will build the capacity to produce 20 million tons of LNG annually.

Nevertheless, Mozambique’s National Petroleum Institute stated it intends to sign similar agreements with South Africa’s Sasol and Italy’s Eni.

Earlier ENH has started oil exploration in the Northern Zambezi basin, known as Block 5. This step comes right after the state established a series of agreements with oil majors, including Equinor, Eni, ExxonMobil, Delonex Energy, Sasol and Mozambique’s national oil and gas company.