Indian State Oil and Natural Gas Corporation (ONGC), Bharat Petroleum and Oil India have started to pay out their share of around US$2 billion for the natural gas exploration area 1 project in the Rovuma basin, northern Mozambique, reported the Economic Times of India.
All three groups have a combined shareholding of 30% in the project which last year has announced the final decision to invest approximately US$15 billion to explore wells and in the processing and liquefaction of the extracted gas.
Approximately 60% of that amount is expected to be raised through debt and the remaining 40%, through contributions from the project’s partners, or approximately US$6 billion or, in the case of the Indian groups, just under US$2 billion.
ONGC, which controls a 16% stake, will provide US$1 billion, while Bharat Petroleum and Oil India, with 10% and 4.0%, respectively, together will contribute the other US$1 billion.
The newspaper reported that the disbursements have already begun, but recalled that the total value will be applied in the project over a four-year period.
The Area 1 block is operated by the Total group, with a 26.5% stake, and its partners are ENH Rovuma Área Um, a subsidiary of Mozambican state oil company ENH, with 15%, Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%) and PTTEP Mozambique Area 1 Limited (8.5%).
The project in its current form includes the exploration of the Golfinho and Atum fields and the construction of two liquefaction units with a combined capacity of 12.9 million tonnes per year. (macauhub)