Oil and Natural Gas Corporation’s (ONGC) overseas arm - ONGC Videsh (OVL) and Oil India (OIL), have completed the acquisition of 100% PI in the Rovuma Area 1 offshore Block, Mozambique by acquiring 100% shares of Videocon Mozambique Rovuma 1, the company holding the 10% PI in the Area 1 from Videocon Mauritius Energy. The company had earlier on June 25, 2013 inked a definitive agreement to acquire this field.
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.
This marks OVL’s entry into this emerging world class offshore gas basin with significant future upside potential. Area 1 has the potential to become one of the world's largest LNG producing hubs and is strategically located to supply LNG to the growing Indian gas market.
