Oil PSUs to develop giant Africa gas field
New Delhi: State-owned ONGC Videsh and Oil India Limited (OIL) along with their partners have received permission from the Mozambique government to develop a giant gas field in the prolific Rovuma Area-1, off the coast of the African nation.
The field has recoverable gas of about 75 trillion cubic feet, more than the combined resource in all the gas fields in India.
In a press statement, Oil India Ltd said the Mozambique government has "accorded approval for the development plan for the Golfinho-Atum natural gas field in the Area-1 block located in the Rovuma offshore basin of Mozambique". Partners in the block plan to turn the gas into LNG for exports.
"The plan outlines the integrated development of the Golfinho-Atum field through an initial two-train onshore liquefaction (LNG) plant with a total processing capacity of 12.88 million tonnes (mt) per annum," it said adding volumes in future may rise up to 50 million tonnes (mt) a year.
The Golfino-Atum project will be Mozambique's first onshore LNG development.
The project will also supply initial volumes of about 100 million cubic feet of natural gas per day for domestic sales in Mozambique.
ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), holds a 16 per cent stake in the block, while OIL has 4 per cent.
US energy major Anadarko Petroleum is the operator with 26.5 per cent interest, while Mitsui of Japan has 20 per cent, Bharat PetroResources Ltd (a unit of state-owned BPCL) 10 per cent and ENH 15 per cent. OIL said the approval of the development plan is a significant milestone in achieving final investment decision (FID) for the project.
The nod paves the way for legal and contractual framework agreements, commencement of resettlement implementation activities, site preparation, efforts to secure long-term LNG sales/offtake agreement and work towards project financing.