ONGC Videsh gets approval for Development Plan for Golfinho-Atum natural gas field

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Capital Market
Last Updated : Mar 05 2018 | 3:16 PM IST

In Rovuma Offshore Basin of Mozambique

ONGC Videsh - a wholly owned subsidiary of ONGC, the National Oil Company of India, announced that the Government of Mozambique has accorded approval for the Development Plan for Golfinho-Atum natural gas field in the Area 1 block located in the Rovuma Offshore Basin of Mozambique. 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.

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% net 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 (BREML) while the remaining 40% shares in BREML are held by Oil India (OIL). Anadarko Petroleum Corporation is the Operator of the project with 26.5% PI and the other partners in the project are Mitsui (20%), ENH (15%), BPRL (10%) and PTTEP (8.5%).

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

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First Published: Mar 05 2018 | 2:55 PM IST