Indian group invests in natural gas project in Mozambique

30 October 2018

Indian state group Bharat Petroleum Corporation Ltd (BPCL) is set to invest US$800 million in a natural gas project in Mozambique in which it owns a 10% stake, a group official said.

A director of the group told the BusinessLine supplement of Indian newspaper the Hindu that the amount to be invested is based on the investments needed to develop the project being estimated at about US$20 billion.

“We estimate that a share between 33% and 37% of this amount is represented by capital and the remainder by debt, so our share of 10% will require an estimated capital investment of the said US$800 million,” the director said.

The source also said that the final investment decision is expected to be made in the first or second half of 2019, and that the consortium is now at an advanced stage of negotiations with several buyers, including the Indian group itself, to ensure the sale of 9 million tonnes of gas per year.

“These negotiations are expected to be completed by the end of the year or early 2019,” the source said.

The consortium that explores the Area 1 block includes Anadarko Moçambique Area 1, Ltd, a wholly-owned subsidiary of the Anadarko Petroleum group, with a 26.5% stake, ENH Rovuma Area Um, a subsidiary of state-owned Empresa Nacional de Hidrocarbonetos, with 15%, Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique BV (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (macauhub)