ONGC, others to invest $6 bn in Mozambique.

State-run ONGC, Oil India Ltd. (OIL) and BPCL will in the next four years invest $6 billion in developing a giant gas field off the Mozambique coast and converting the fuel into LNG for export to nations like India, Oil Minister Dharmendra Pradhan said recently.

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,' he said here.

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.


BS