Thailand’s PTT Exploration and Production (PTTEP) plans to invest US$5.5 billion in 2014, most of which in its natural gas exploration project in northern Mozambique, the group said according to financial news agency Reuters.
PTTEP is the is the most important subsidiary of Thai state group PTT and owns 8.5 percent of the consortium led by US group Anadarko Petroleum in the Area 1 block of the Rovuma basin, in Mozambique’s Cabo Delgado province.
Last December, the PTT group signed a promissory contract with Anadarko Petroleum to acquire 1.6 million tons of liquid natural gas (LNG) per year from the block, which is in the same area where other companies are involved in oil and gas surveying.
According to the chief executive of PTTEP, Tevin Vongvanich, the group’s investment plan for 2014 is 60 percent higher than initially planned, and that most of the investments would be made in the project in Mozambique.
As well as PTTEP and Anadarko, the consortium responsible for Area 1 of the Rovuma Basin also includes Mozambican state company Empresa Nacional de Hidrocarbonetos (ENH) with 15 percent, BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique (10 percent).
In August of last year Anadarko reduced its stake by selling a 10 percent share in the block to Indian company ONGC Videsh, which paid US$2.64 billion.
At the same time the Indian state oil company ONGC and Oil India reached an agreement to buy the 10 percent stake owned by Videocon Industries in the same area, for US$2.5 billion. (macauhub)