ONGC, BPCL gain as Mozambique gas field has larger reserves

ONGC and BPCL rose by 0.56% to 1.62% at 11:05 IST on BSE after Anadarko Petroleum Corp raised its reserve estimates for a Mozambique asset where the two Indian energy companies own stakes.

BPCL (up 1.62%) and ONGC (up 0.56%), edged higher.

The S&P BSE Sensex was down 34.80 points, or 0.15% at 22,473.62.

BPCL had outperformed the market over the past one month till 6 May 2014, rising 5.36% compared with the Sensex's 0.67% rise. The scrip had also outperformed the market in past one quarter, rising 32.55% as against Sensex's 10.82% rise.

ONGC had outperformed the market over the past one month till 6 May 2014, rising 3.49% compared with the Sensex's 0.67% rise. The scrip had also outperformed the market in past one quarter, gaining 25.77% as against Sensex's 10.82% rise.

Bharat Petroleum Corporation (BPCL) said in a statement that its wholly-owned subsidiary, Bharat PetroResources (BPRL), advised that Anadarko Mocambique Area 1, the operator of the offshore Area 1 block in the Rovuma Basin, Mozambique, announced on Monday, 5 May 2014, in its first quarter 2014 results, that successful appraisal drilling activities in the Orca field increased the total estimated recoverable resources in Offshore Area 1 to a range of 50 to 70-plus trillion cubic feet of natural gas. In addition, the consortium continued to advance the Mozambique LNG project by adding incremental non-binding LNG off-take agreements.

The consortium members in the block are Anadarko Mocambique Area 1 (26.5% PI), BPRL Ventures Mozambique BV (10% PI), ONGC Videsh, the overseas arm of state-owned ONGC, (10% PI), Beas Rovuma Energy Mozambique (10 % PI), Cove Energy Mozambique Rovuma Offshore (8.5% PI) and Mitsui E&P Mozambique Area 1, (20% PI). The balance 15% PI is with Empressa Nacional de Hidrocarbonetos E.P (ENH), the national oil company of Mozambique, who are carried through the exploration phase.

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