ONGC gains after ONGC Videsh agrees to invest in Mozambique LNG project

ONGC was up 0.90% to Rs 168.85 at 10:56 IST on the BSE after ONGC Videsh and its joint venture partners announced final investment decision for initial two LNG train project development.

The announcement was made after market hours yesterday, 19 June 2019.

Meanwhile, the S&P BSE Sensex was up by 109 points, or 0.28% to 39,221.74.

On the BSE, 54,000 shares were traded in the counter so far compared with average daily volumes of 2.17 lakh shares in the past two weeks. The stock had hit a high of Rs 169.10 and a low of Rs 166.05 so far during the day. It hit a 52-week high of Rs 185 on 24 September 2018 and a 52-week low of Rs 127.90 on 14 February 2019.

ONGC Videsh, a wholly owned subsidiary of ONGC, the National Oil Company of India, announces that Rovuma Offshore Area 1 consortium (Area-1), has taken a final investment decision (FID) for the two train Golfinho/Atum Mozambique LNG Project.

Mozambique LNG Project will be the first onshore LNG facility in Mozambique consisting of initial two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MMTPA) supported by the development of the Golfinho/Atum fields located offshore entirely within Area 1. The project has successfully secured in aggregate 11.1 MMTPA of long-term LNG sales (representing 86% of the plant's nameplate capacity) with key LNG buyers in Asia and in Europe.

The FID signifies that the Golfinho/Atum Mozambique LNG project will now advance to the construction phase.

ONGC Videsh holds 16% interest in the Mozambique Rovuma Area-1 offshore project out of which 10% PI is held directly by ONGC Videsh and another 6% interest is held through its 60% shareholding in Beas Rovuma Energy Mozambique (BREML) while the remaining 40% shares in BREML are held by Oil India (OIL). Anadarko Mozambique Area 1, Lda is the Operator of the project with 26.5% PI and the other partners are Mitsui E&P Mozambique Areal (20%), ENH (15%), BPRL (10%) and PTTEP Mozambique Area 1 (8.5%).

ONGC's net profit fell 31.6% to Rs 4044.60 crore on a 11.6% rise in the net sales to Rs 26758.46 crore in Q4 March 2019 over Q4 March 2018.

ONGC is the largest integrated oil and gas company of India, operating along the entire hydrocarbon value chain.

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