Oil India (OIL), along with ONGC Videsh (OVL), has completed the acquisition of 100% shares in Videocon Mozambique Rovuma 1 from Videocon Mauritius Energy. Videocon Mozambique Rovuma 1 holds a 10% participating interest in the Rovuma Area 1 Offshore Block in Mozambique. The company had earlier on June 25, 2013 inked a definitive agreement to acquire this field. This acquisition marks OIL’s entry into the global LNG industry.
Area 1 covers approximately 2.6 million acres in the deepwater Rovuma Basin offshore Mozambique and represents the largest gas discovery offshore East Africa with estimated recoverable resources of between 35 and 65 TCF as per operator's estimates. Partners in Area 1 include Anadarko, operator of the project, ENH, Mitsui, BPRL and PTTEP. Area 1 has the potential to become one of the world's largest LNG producing hubs with first LNG expected in 2018.
The Area 1 LNG project is strategically located to competitively supply LNG to India, and OIL’s and OVL’s participation in the project will facilitate access to the growing Indian gas market which will supplement the country’s energy security endeavour. OIL and OVL will also devote significant financial and technical resources to the development of the project.
