ONGC Videsh Limited (OVL), the foreign arm of India’s state-run Oil and Natural Gas Corporation (ONGC), has announced the signing of an agreement with US energy firm Anadarko to buy 10 per cent of its stake in the Rovuma gas field offshore Mozambique for US$2.64bn
OVL said the latest acquisition, which will take the combined holding of OVL and Oil India in the field to 20 per cent, is likely to increase OVL’s reserve and resource base significantly as well as boost the firm’s production.
Rovuma offshore field is said to be the largest gas discovery off Africa’s east coast with estimated recoverable reserves of 991bn cubic metres to 1.8 trillion.
D.K. Sarraf, managing director of OVL said the deal was a strategic investment for the country, with Indian companies holding a 30 per cent stake overall in the offshore block, with Bharat Petroleum Corporation Limited (BPCL) holding a 10 per cent stake, Indian daily Business Standard reported.
“The field is not far from India, so the LNG transportation cost will be very cheap. We will start getting gas from 2018 which will help revive gas-based downstream investment in the country,” Sarraf added.
Anadarko, the stake of which will come down to 26.5 per cent, will remain the operator of the project.
Besides BPCL, other partners in the project are Empresa Nacional de Hidrocarbonetos (ENH) of Mozambique (15 per cent), Japan’s Mitsui & Co Ltd (20 per cent) and PTT Exploration and Production Public Company Limited of Thailand (8.5 per cent).
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