Business Standard

Monday, February 17, 2025 | 12:14 AM ISTEN Hindi

Notification Icon
userprofile IconSearch

ONGC to buy stake in Anadarko Mozambique gas block for $2.64 billion

ONGC faces diminishing supplies from its aging oil and gas fields in India and has been buying interests in overseas assets

Reuters New York

 

Anadarko Petroleum Corp said it agreed to sell a 10% stake in a gas field offshore Mozambique to a unit of Oil & Natural Gas Corp for $2.64 billion in cash, as the US oil company looks to focus more on its domestic assets.
 
The deal for Mozambique's offshore Area 1 is expected to close around the end of this year, Anadarko said.
 
ONGC faces diminishing supplies from its aging oil and gas fields in India and has been buying interests in overseas assets.
 
ONGC Videsh, the Indian company's overseas arm, recently paid $2.48 billion for a 10% stake in another Mozambique gas field from Videocon Group .
 
Anadarko also said it will remain the operator of Area 1 with a working interest of 26.5% in the block, which is located in Mozambique's deepwater Rovuma Basin.
 
The Rovuma field has the potential to become one of the world's largest liquefied natural gas (LNG) producing hubs by 2018, and is strategically located to supply gas to India at competitive prices.
 
Recent discoveries have turned the Rovuma offshore field into a major draw for global energy producers and boosted Mozambique's natural gas reserves to around 150 trillion cubic feet, or enough to supply the world's No. 1 LNG importer - Japan - for 35 years. 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 26 2013 | 7:38 AM IST

Explore News