OVL Completes Mozambique Gas Block Deal

ONGC Videsh (OVL), overseas arm of India's state owned energy firm ONGC, on Friday completed the acquisition of 10% participating interest in the Mozambique’s Rovuma Area 1 offshore block from Anadarko.

In August last year, OVL inked the deal to acquire the stake.

"Acquisition of an additional 10% interest in Area 1 follows our earlier announcement of a completion of a joint acquisition, with Oil India Ltd (OIL), of an indirect 10% interest in Area 1, from Videocon Mauritius Energy," Business Standard quoted the company as saying.

In a separate deal, OVL and Oil India last year bought 10% stake in Rovuma Area 1 from Videocon.

Area 1 has the potential to be one of the world's largest LNG producing hubs as discovered gas resources are to be monetized through the construction of a LNG hub in Mozambique. Area 1 covers approximately 2.6 million acres in the deep-water Rovuma Basin.

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