The Mozambique government has agreed to offer cost-recovery rights to production and development of gas field and the LNG terminal by ONGC Videsh Ltd (OVL). Gas from the field is meant for exports and is expected to boost its revenue and bottom-line in the coming years, Financial Express reported.
ONGC Videsh Ltd, the overseas arm of government-owned ONGC, teamed up with another state-run player Oil India Ltd and bought Videocon’s 10% stake in Mozambique’s Rovuma Area 1 for $ 2.475 billion in June, 2013.
Subsequently, in February, 2014, OVL on its own bought another 10% stake in the same field from Anadarko Petroleum Corp of the US for $2.64b. The 10% stake of Videocon purchased by OVL and OIL together is currently split in 6:4 ratio and total payout for OVL for the back-to-back acquisitions is $4.125b.
The project with capacity to produce 20m tonnes of liquefied natural gas annually would be the world’s largest LNG export site after ExxonMobil-run Ras Laffan in Qatar.