ONGC Videsh, partners to invest $20bn in Mozambique LNG project
20 Jun 2019
1
A consortium comprising ONGC Videsh Ltd, the overseas arm of state-run Oil and Natural Gas Corporation (ONGC), and its partners will collectively invest a total of $20 billion in the two-train Golfinho/Atum Mozambique LNG Project.
As per the Final Investment Decision (FID), the first gas packet from the Mozambique LNG project is expected in 36-48 months, ONGC stated in a filing with the stock exchanges.
The investment proposal was approved at a meeting of senior ministers convened by home minister Amit Shah on 4 June. Finance minister Nirmala Sitharaman, external affairs minister S Jaishankar, petroleum and natural gas minister Dharmendra Pradhan and commerce minister Piyush Goyal were present at the meeting.
ONGC has a participating interest (PI) in the Mozambique Rovuma Area-1 Offshore Project through ONGC Videsh, while Bharat Petroleum Corporation Ltd (BPCL) has a stake in it through Bharat PetroResources Ltd (BPRL). The Mozambique government held a ceremony on Tuesday to announce the decision.
“The Mozambique LNG Project will be the first onshore LNG facility in Mozambique consisting of initial two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (mtpa) supported by the development of the Golfinho/Atum fields located offshore entirely within Area 1,” a statement from ONGC said.
“The project has successfully secured an aggregate 11.1 mtpa of long-term LNG sales (representing 86 per cent of the plant’s nameplate capacity) with key LNG buyers in Asia and Europe. Additionally, the project will have a significant domestic gas component for in-country consumption in Mozambique to help fuel the economic development,” ONGC added. The FID signifies that the Golfinho/Atum Mozambique LNG project will now advance to the construction phase.
ONGC Videsh holds 16 per cent interest in the Mozambique Rovuma Area-1 Offshore Project, out of which 10 per cent PI is held directly by ONGC Videsh and another 6 per cent interest is held through its 60 per cent shareholding in Beas Rovuma Energy Mozambique Limited (BREML). The remaining 40 per cent of shares in BREML is held by Oil India Ltd.
Anadarko Mozambique Area 1 is the operator of the project with 26.5 per cent PI, and the other partners are Mitsui E&P Mozambique Areal Ltd (20 per cent), ENH (15 per cent), BPRL (10 per cent) and PTTEP Mozambique Area 1 Ltd (8.5 per cent).
ONGC Videsh and Oil India Limited had, on 7 January 2014, acquired 100 per cent shares in Videocon Mozambique Rovuma 1 Limited, the company holding a 10 per cent participating interest in the Rovuma Area 1 offshore block in Mozambique (Area 1).
ONGC Videsh has also acquired a direct 10 per cent PI in the same Rovuma Area 1 offshore block in Mozambique from Anadarko Mozambique Area 1 Limited, an affiliate of Anadarko, on 28 February 2014.
ONGC Videsh at present, has stake in 41 oil and gas projects in 20 countries, viz, Azerbaijan (2 projects), Bangladesh (2 projects), Brazil (2 projects), Colombia (7 projects), Iran (1 project), Iraq (1 project), Israel (1 project), Kazakhstan (1 project), Libya (1 project), Mozambique (1 project), Myanmar (6 projects), Namibia (1 project), New Zealand (1 project), Russia (3 projects), South Sudan (2 projects), Sudan (2 projects), Syria (2 projects), UAE (1 project), Venezuela (2 projects), and Vietnam (2 projects).
.jpg "India, Nigeria agree on local currency settlement system")
