India likely to get gas from Mozambique field

Videocon-BPCL consortium, which has 20% share in the Rovuma Basin block, eyes growing domestic energy market

Bharat PetroResources, promoted by Videocon and Bharat Petroleum Corporation, plans to bring natural gas from Mozambique to India. The consortium has 20 per cent share in the Rovuma Basin block off the coast of Mozambique in southern Africa.

The 8-10 trillion cubic ft of gas in the Windjammer well of the Rovuma Basin block is touted as one of the world's biggest finds this year. “We may bring this gas to India in the near future,” Venugopal Dhoot, chairman, Videocon Industries, told Business Standard.

Texas-based Anadarko Petroleum holds a 36.5 per cent stake in the block, with Britain's Cove Energy and Mitsui E&P Mozambique holding 8.5 per cent and 20 per cent, respectively. The balance 15 per cent is held with Empressa Nacional De Hidrocarbonetos (ENH), the national oil company of Mozambique.

If BPRL and Videocon plan to bring the gas to India, they would have to put up a liquefaction plant in Africa to transfer the gas. "Considering the gas is close to the Indian Ocean, India is a viable market for it. But the entire consortium would have to agree to putting up the LNG plant," said a senior executive in one of the participating companies. "It’s too early to talk about the use of gas that the consortium has discovered. It’s a very large block and if the find is around 10 tcf, Videocon's and BPRL's share would translate to a total of 2 tcf. Since the African market would not be able to absorb the gas, a decision on bringing the gas to India would need to be taken by the year-end," he added.

When asked, a BPCL spokesperson said it was too early for any details. Industry analysts say the gas find is nearly as big as Reliance Industries’ KG-D6 filed in India.

Videocon and BPCL had acquired their stakes in the basin from Anadarko in August 2008. While Videocon paid $75 million for its share, BPCL's payment for the share is not revealed.

In 2009, the same consortium had discovered additional oil in an exploration acreage in the Campos basin, off the Brazilian coast. Anadarko Petroleum Corp is the operator of the block ,with 30 per cent interest, Devon Energy Corp holds 25 per cent and South Korea's SK Energy 20 per cent. IBV Brazil Petroleo, a joint venture between Bharat PetroResources and Videocon, holds the remaining 25 per cent interest in the block.

Within India, Videocon Industries owns 25 per cent in the Ravva field located in the Krishna Godavari basin off India's east coast, with Oil and Natural Gas (ONGC) and Cairn India holding the remaining stake. At present, the oil and gas segment contributes around Rs 1,100 crore to the Videocon group’s Rs 10,674-crore revenue.