ONGC Videsh Limited (ONGC Videsh) - a wholly owned subsidiary of ONGC, announced that Mozambique LNG Company Pte Ltd., the jointly owned marketing entity of ONGC Videsh and joint venture partners of Mozambique Rovuma Offshore Area 1 project has entered into long-term LNG Sale and Purchase Agreement (SPA) with Tokyo Gas Co. Ltd. (Tokyo Gas) and Centrica LNG Company Ltd., a subsidiary of Centrica pie (Centrica) through a co-purchasing agreement.
The two companies have signed a deal for sale of 2.6 mn tonnes per annum (MMTPA) from the start-up of production until the early 2040s. These latest deals build upon previously executed deals for long term offtake of LNG from Rovuma Offshore Area 1 project and take long-term sales to more than 9.5 MMTPA.
The state-run oil major has also signed an MOU with CNOOC gas and power (CNOOC) for 1.5 MMTPA for a term of 13 years, Shell International Trading Middle East Ltd. (Shell) for 2 MMTPA for a term of 13 years, Bharat Gas Resources Ltd. a wholly owned subsidiary of Bharat Petroleum Corporation Ltd. for 1 MMTPA for a term of 15 years and Pertamina, an Indonesian PSU for 1 MMTPA for a term of 20 years.
The exchange filing also mentioned that with the approval of the development plan in February 2018, ongoing resettlement implementation activities, site preparation, and execution of these SPAs, the project is poised to take off in H1 2019.
ONGC Videsh holds 16% interest in the Mozambique Rovuma Area-1 Offshore Project out of which 10% PI is held directly by ONGC Videsh and another 6% interest is held through its 60% shareholding in 'Beas Rovuma Energy Mozambique Limited' ("BREML"). The remaining 40% shares in BREML are held by Oil India Limited ("OIL"). Anadarko Mozambique is the operator of the project with 26.5% PI and the other partners are Mitsui E&P Mozambique Area 1 Ltd. (20%), ENH (15%), BPRL (10%) and PTTEP (8.5%).
ONGC Videsh is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, and is the largest international oil and gas E&P Company of India. At present, ONGC Videsh has 41 projects in 20 countries including Azerbaijan, Bangladesh, Brazil, Colombia, Iraq, Israel, Kazakhstan, Libya, Mozambique, Myanmar, Namibia, New Zealand, Russia, South Sudan, Sudan, UAE, Venezuela, and Vietnam.
Oil & Natural Gas Corpn Ltd is currently trading at Rs149.25 up by Rs1.55 or 1.05% from its previous closing of Rs147.70 on the BSE. The scrip opened at Rs148.95 and has touched a high and low of Rs149.70 and Rs148.50 respectively.
