ONGC, Oil India and Bharat Petroluem to invest $6 billion in Mozambique

ONGC, Oil India and Bharat Petroluem to invest $6 billion in Mozambique

ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corp (ONGC), Oil India Ltd and a unit of Bharat Petroleum Corp Ltd (BPCL) together hold 30 per cent interest in Rovuma Area-1, which is estimated to hold recoverable gas reserves of up to 75 trillion cubic feet.

“We have invested more than $6 billion so far (in the Mozambique field) and another $6 billion will be invested by 2019 to develop Rovuma Area-1 field,” Oil Minister Dharmendra Pradhan said

An estimated $18.4 billion will be required to bring first set of discoveries in Rovuma Area-1 on to production and convert that gas into liquid (liquefied natural gas or LNG) for ease of shipping to consuming nations like India.

OVL’s share would be $2.944 billion. Pradhan, who returned from a two-day visit to the African nation last night, said the first LNG from the block is targeted for 2018-end or early 2019.

The project with capacity to produce 20 million tonnes of LNG annually would be the world’s largest LNG export site after ExxonMobil-run Ras Laffan in Qatar.

Source: economictimes.indiatimes.com

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