ONGC joins OIL to bid for Mozambique gas field stake; may join Mangalore LNG terminal

ONGC Videsh Ltd (OVL) the overseas arm of state-run explorer Oil and Natural Gas Ltd, has teamed up with Oil India Ltd (OIL) to bid for a 20 per cent stake that US explorer Anadarko Petroleum Corp and the Videocon Group are offering in a Mozambique oil and gas field, reports quoting company sources said.

ONGC will also sign an agreement to conduct feasibility of setting up $500-750 million tonne liquid gas (LNG) import terminal at Mangalore, on 18 March.

ONGC, Bharat Petroleum Corp Ltd (BPCL), Mitsui of Japan and New Mangalore Port Trust will together sign the memorandum of understanding (MoU), official sources said.

Anadarko, the operator of the Mozambique project, is reducing its stake in block 1 of the Rovuma offshore field to 26.5 per cent.

Simultaneously, India's Videocon Group is also selling its 10 per cent stake in the project.

The Rovuma offshore field has gas reserves of around 150 trillion cubic feet, enough to supply world top importer Japan for 35 years.