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    Indian State Owned Energy Firms Plan $6 bn Investment in Mozambique Gas Field

Summary

Indian state owned energy companies will invest $6 billion in developing a giant gas field offshore Mozambique, India’s Oil Minister Dharmendra Pradhan said.

by: shardul

Posted in:

Asia/Oceania

Indian State Owned Energy Firms Plan $6 bn Investment in Mozambique Gas Field

Indian state owned energy companies will invest $6 billion in developing a giant gas field offshore Mozambique, India’s Oil Minister Dharmendra Pradhan said.

"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," Pradhan, who was on a two day trip to Mozambique, told reporters in New Delhi on Monday, Press Trust of India reported.

State owned BPCLOVL, and Oil India already own significant stake in gas field offshore the East Africa nation.

OVL along with Oil India bought 10 per cent stake in Mozambique gas asset from Videocon Industries for $2.48 billion in June last year. OVL acquired another 10 per cent stake in the field from Anadarko Petroleum Corp for $2.64 billion. 

BPCL also holds 10 percent stake in an offshore gas asset.

Last November, India and Mozambique signed a memorandum of understanding (MoU) to enhance bilateral cooperation in the field of natural gas and oil.

"I had a very successful tour to Mozambique... We are getting full cooperation from the Mozambique government for early development and monetisation of Rouvma Area 1," Press Trust quoted the minister as saying.

Pradhan said the block consortium is talking to Indian buyers like state gas utility GAIL for selling LNG.

"If it fetches more money (to us) by selling the LNG then and there itself, we will opt for that. But if it is beneficial to bring the gas to India, we will certainly look at that option," he said.

Anadarko is the operator of the block with 26.5% stake. Other partners in Area 1 include Mitsui with 20% stake, ENH (15%) and PTTEP (8.5%).

According to Press Trust, so far, seven gas fields have been discovered in the block. Of these, three fields - Lagosta, Windjammer and Barquentine (collectively called the Prosperidade field) - extend into the adjacent Block Area-4 where Italy's ENI with a 70 per stake is the operator.

The others - Atum, Golfinho and a small field Tubarao, are independent fields lying fully in Block Area-1.