OVL invests $2.64 billion in block offshore Mozambique
NEW DELHI -- ONGC Videsh Limited (OVL) has bought a ten percent participating interest in the Rovuma Offshore Block in Mozambique (Area 1), from Anadarko Moçambique Area 1 Limitada, a wholly owned indirect subsidiary of Anadarko Petroleum Corporation.
OVL was advised by Simmons & Simmons, an international law firm, on the $2.64 billion acquisition.
This acquisition marks ONGC’s second substantial acquisition of participating interest in Area 1. In June 2013, OVL and Oil India Limited (OIL) entered into an agreement with Videocon Mauritius Energy Limited to jointly acquire Videocon Mozambique Rovuma 1 Limited, the company holding a ten percent participating interest in Area 1. Simmons & Simmons was also the legal advisor to OVL and OIL for that transaction.
Area 1 is estimated to have recoverable reserves of 35 to 65 Tcf, which represents the largest gas discovery in East Africa. A LNG project is being planned to export gas produced from Area 1 and its adjacent block, with the first LNG expected by 2018. Once completed, Area 1 has the potential to become one of the world’s largest LNG producing hubs. The partners in Area 1 include Anadarko, operator of the project (Anadarko will remain the operator of Area 1 with a working interest of 26.5 percent following the completion of the acquisition), ENH, Mitsui, BPRL and PTTEP.