OVL announces additional acquisition of 10% interest in the Rovuma Area 1 Offshore Block in Mozambique
ONGC Videsh Limited (OVL) today completed the acquisition of 10% participating interest (“PI”) in the Rovuma Area 1 offshore Block from Anadarko Moçambique Area 1 Limitada (“Anadarko”). On the 24th August 2013, OVL signed definitive agreements with Anadarko to acquire this interest.
Acquisition of an additional 10% Interest in Area 1 follows our earlier announcement of a completion of a joint acquisition, with Oil India Limited (“OIL”), of an indirect 10% interest in Area 1, from Videocon Mauritius Energy Limited. BPRL Ventures Mozambique B.V. (“BPRL”), another Indian PSU already holds a 10% interest in Area 1.
Area 1 covers approximately 2.6 million acres in the deep-water Rovuma Basin, offshore Mozambique and represents the largest natural gas discoveries in offshore East Africa with estimated recoverable resources of 45 to 70 trillion cubic feet. The partners in Area 1 include Anadarko (operator of the project), ENH (the National Oil Company of Mozambique), Mitsui, BPRL, BREML and PTTEP.
The acquisition marks OVL’s entry into this emerging world-class offshore natural 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.
OVL is a wholly owned subsidiary of Oil and Natural Gas Corporation Limited (ONGC), the national oil company of India, and is India’s largest international oil and gas E&P company. OVL participates in 35 projects in 18 countries including Azerbaijan, Brazil, Colombia, Iraq, Kazakhstan, Libya, Myanmar, Russia, South Sudan, Sudan, Syria, Venezuela and Vietnam. OVL is currently producing about 160 thousand barrels of oil and oil equivalent of gas per day and has total oil and gas reserves of about 433 mmtoe as of 31 March 2013.
ONGC’s market capitalisation as on 27th February 2014, was INR 242933 Crore (US$ 39.22 billion). It is the highest valued and highest profit making Government of India enterprise. During the financial year ended 31 March 2013, ONGC Group had produced 58.7 million tonne of oil and oil equivalent gas (mmtoe) (approx. 1.2 mmboe per day), Turnover of INR 165,849 Crore (US$30.45 billion) and profit after tax of INR 24,220 Crore (US$4.44 billion). ONGC Group had total oil and gas reserves of 1,759 mmtoe as on 31 March 2013.
Note: Turnover and profit data for ONGC presented in US$ for illustrative purposes only and converted from Indian Rupee at the exchange rate of INR 54.45 for US$1 (average RBI reference rate for 2012-13). Market capitalisation of ONGC as on 27th February 2014 converted at [INR 61.938 for US$1 (RBI reference rate of 27th February 2014)].