Videocon, BPCL strike natural gas in Mozambique block

Videocon and BPCL hold 10% stake each in the block where Japan's Mitsui & Co Ltd is the second-biggest stakeholder with a 20% interest

Videocon Industries and Bharat Petroleum Corp Ltd (BPCL) have reported a fourth huge natural gas discovery in an offshore Mozambique block, where they hold 10% stake each.

Videocon Hydrocarbon Holdings, a wholly owned subsidiary of Videocon Industries, and Bharat PetroResources Ltd, a unit of BPCL, said a new discovery has made in the offshore Area 1 of the Rovuma basin, the two firms said in almost identical but separate statements.

"The Orca-1 discovery well encountered approximately 190 net feet (58 meters) of natural gas pay in a Paleocene fan system," they said.

US energy firm Anadarko Petroleum Corp is the operator with 36.5% stake in Mozambique's offshore Area 1, which may hold as much as 70 Trillion cubic feet of gas resources.

Videocon and BPCL hold 10% stake each in the block where Japan's Mitsui & Co Ltd is the second-biggest stakeholder with a 20% interest.

Thai state oil company PTT Exploration and Production PCL has an 8.5% interest and Mozambique's state-owned ENH 15%.

"The Orca-1 exploration well was drilled to a total depth of approximately 16,391 feet, in water depths of 3,481 feet," the statements said.

Two major natural gas discoveries have so far been made in Offshore Area 1 of Mozambique's Rovuma Basin. The Prosperidade complex is estimated to hold between 17 and 30-plus Tcf of recoverable natural gas while separate and distinct Golfinho/Atum complex is estimated to hold 15-35 Tcf of recoverable natural gas resources.

Evaluation of a third discovery on the block, Tubarao, is ongoing with an appraisal well that is expected to be drilled this year.

The gas found in Offshore Area 1 is to be turned into liquefied natural gas (LNG) and shipped to markets like India. The plant in the Cabo Delgado province in northern Mozambique, is scheduled to start operating in 2018 with a capacity of 20 million tonnes of LNG per year.

The capacity will be split evenly between operators of Offshore Area-1 and Italian giant Eni, which is developing gas found in the neighbouring Offshore Area 4.