ONGC and OIL acquire stake in Mozambique gas field

oil freeThe Rovuma Area 1 deepwater block is said to be largest gas discovery off Africa’s east coast. (Image source: FreeDigitalPhotos.net)Indian oil and gas company ONGC and Oil India (OIL) have acquired a jointly-owned 10 per cent stake of Videocon Industries in the Mozambique gas field for US$2.5bn

A senior official from ONGC management revealed that all partners of the Rovuma 1 field in the waters off the African nation have given their acceptance to the deal, which will now be expected to be closed shortly.

This move assumes significance after ONGC lost a US$5bn bid for ConocoPhillips stake at Kashagan oil field in Kazakhstan last month, as the Kazakhstan government used its first right of refusal to facilitate the deal for its national oil company KazMunayGaz.

The official said, “The Mozambique government is also in agreement and the deal is almost done.”

The Rovuma Area 1 deepwater block is said to be largest gas discovery off Africa’s east coast with an estimated recoverable reserves of 35 to 65 trillion cu ft (tcf).

US-based Anadarko Petroleum is the operator of the project. Other partners include state-run Bharat Petroleum, Empresa Nacional de Hidrocarbonetos of Mozambique, Mitsui and Co of Japan and PTT Exploration and Production of Thailand.

 

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