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Final investment decision for Mozambique gas block seen by March-April

Reuters  |  NEW DELHI 

By Promit Mukherjee

NEW DELHI (Reuters) - A final investment decision, commonly called FID, for a massive offshore natural in is expected to be ready by March or April, the of Mozambique's national company said in New Delhi on Sunday.

This is the first time any of the seven partners in the block has given a specific timeline regarding an investment plan for the block, located east of Mozambique's Rovuma basin and called Area 1.

An FID for the block could unlock value in one of the world's biggest recent gas discoveries, estimated at 75 trillion cubic feet.

FID is essentially a stage in funding based on which banks can agree to extend lines of credit for a particular project.

Indian companies - state-owned explorer and through its overseas arm ONGC Videsh Ltd, Ltd and together hold the highest share in the block with a 30 percent stake.

National oil company of de Hydrocarbonetos (ENH) holds 15 percent and Anadarko Area, a subsidiary of U.S.-based explorer Anadarko Petroleum, holds 26.5 percent and is operator of the block. "One of the Indian companies has already signed a share and purchase agreement for the gas ... The first molecules will come to by 2024," said.

The location of Mozambique is strategic for Indian imports of natural gas and it does not have the geopolitical challenges of the Middle East, Mitha said.

Area 4, an adjoining operated by Italian major , will see its FID by July, the added.

The investment decision for the 75-trillion-cubic-feet natural involves setting up two liquefied natural gas (LNG) plants of 12.88 million tonnes per annum in total.

(Reporting by Promit Mukherjee; Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sun, February 10 2019. 22:18 IST
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