Mozambique okays development of gas block with OVL, OIL stake in Rovuma

ONGC Videsh holds 16% net stake in the Project, of which 10% participating interest is held directly, and 6% through its 60% holding in BREML

The government of Mozambique has approved the development plan for Golfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basin of Mozambique, in which both ONGC Videsh (OVL),Oil India Ltd and Bharat PetroResources (BPRL) have considerable stake. 

The plan outlines the integrated development of the Golfinho-Atum field through an initial two train onshore liquefaction plant with a total processing capacity of 12.88 MMTPA.  The approval of the Development Plan is the culmination of several years of progress on technical and commercial aspects of the development. The Golfinho-Atum Project will also supply initial volumes of approximately 100 million cubic feet of natural gas per day for domestic sales for Mozambique’s industrial development which will have significant socio-economic impact, OVL said in a statement today. 

This foundational project paves the way for significant future expansion of up to 50 MMTPA from Offshore Area 1. The Area 1 block located in the deep-water Rovuma Basin offshore Mozambique is one of the largest gas discoveries in offshore East Africa with estimated recoverable resources of approximately 75 trillion cubic feet. 

ONGC Videsh holds 16 per cent net interest in the Mozambique Rovuma Area-1 Offshore Project out of which 10 per cent participating interest is held directly by ONGC Videsh and another 6 per cent interest is held through its 60 per cent shareholding in ‘Beas Rovuma Energy Mozambique Limited’ (“BREML”) while the remaining 40 per cent shares in BREML are held by OIL. Anadarko Petroleum Corporation is the Operator of the project with 26.5 per cent PI and the other partners in the project are Mitsui (20 per cent), ENH (15 per cent), BPRL (10 per cent) and PTTEP (8.5 per cent). 

With the approval of major legal and contractual framework agreements and the start of resettlement implementation activities and site preparation, the approval of the development plan is a significant milestone in the further progress of the Mozambique Rovuma Area-1 Offshore Project.