ONGC Videsh Ltd (OVL), the overseas subsidiary of Indian state-owned oil company ONGC, plans to invest US$3bn in Mozambique. In January 2014, OVL and Oil India Ltd (OIL) completed the acquisition of 10% interest in the Rovuma Area 1 offshore Block in Mozambique by acquiring 100% shares of Videocon Mozambique Rovuma 1 Ltd, the company holding the 10% stake in the Area 1, from Videocon Mauritius Energy Limited for about US$2.5bn. The remaining US$0.5bn will be invested in gas production from the field and in gas liquefaction.
Area 1 represents the largest gas discovery in offshore East Africa with estimated recoverable reserves of 35 to 65 tcf (990 to 1,840 bcm) of gas. Gas resources are estimated sufficient for a 20 Mt/year liquefaction capacity.
Source: Anadarko