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ONGC Videsh, partners to invest $20 b in Mozambique LNG project

Our Bureau New Delhi | Updated on June 19, 2019 Published on June 19, 2019

ONGC has a participating interest in the Mozambique Rovuma Area-1 Offshore Project through ONGC Videsh   -  Amit Dave

This will be the first onshore LNG facility in the African nation

ONGC Videsh Ltd, the overseas investment arm of ONGC, and its consortium partners have announced the Final Investment Decision (FID) in the Mozambique LNG project.

The Indian consortium is expected to collectively invest $20 billion in the two-train Golfinho/Atum Mozambique LNG Project. The first gas packet is expected in 36-48 months, ONGC said in a statement to the stock exchanges.

A meeting of senior ministers convened by Home Minister Amit Shah on June 4 had approved the investment. 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. Also present were senior officials and NITI Aayog CEO Amitabh Kant.

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.

Stake holding

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).

Published on June 19, 2019
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