OVL’s Mozambique project gets more buyers for projected gas production

Our Bureau New Delhi | Updated on February 27, 2019

Tokyo Gas and Centrica LNG Company will be co-purchasing 2.6 million tonnes per annum (mtpa) of natural gas from ONGC Videsh-partnered Rovuma Offshore Area 1 project in Mozambique.

The agreement with the Tokyo Gas and Centrica LNG Company will be effective from the date production begins to the early 2040s. This takes the long-term sale tie-ups from the project to more than 9.5 mtpa, OVL said in a statement.

The development plan for the project was approved in February 2018. A final investment decision is expected in the first half of 2019, the statement said.

Under the existing agreements, CNOOC Gas and Power Singapore Trading & Marketing have a commitment to procure 1.5 mtpa over 13 years. Shell International Trading Middle East has an agreement to procure 2 mtpa over 13 years.

Bharat Gas Resources, a wholly-owned subsidiary of Bharat Petroleum Corporation will get 1 mtpa of gas over 15 years. State-owned oil and gas company of Indonesia, Pertamina has an agreement for 1 mtpa of gas over 20 years.

The Mozambique Rovuma Offshore Area 1 project will be developed initially as an onshore LNG plant consisting of two LNG trains with total nameplate capacity of 12.88 mtpa to support the development of the Golfinho-Atum field located entirely within Offshore Area 1.

ONGC Videsh presently holds 16 per cent net interest in the Mozambique Rovuma Area-1 Offshore Project out of which 10 per cent Participating Interest (PI) is held directly by ONGC Videsh and another 6 per cent is held through its 60 per cent shareholding in Beas Rovuma Energy Mozambique Ltd (BREML). The remaining 40 per cent shares in BREML are held by Oil India Ltd.

Anadarko Petroleum Corporation is the operator of this project with 26.5 per cent PI. The other partners are: Mitsui (20 per cent), ENH (15 per cent), BPRL (10 per cent) and PTTEP (8.5 per cent).

Published on February 27, 2019

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