Thursday, 14 November 2013

ONGC goes for stakes in African Gas Field

Oil and Natural Gas Corporation, India’s biggest oil explorer has prepared to invest in a deal to buy a 10% stake in an offshore gas field in Mozambique. ONGC has further strengthened relations with Africa by signing this second such deal in recent months. Recently ONGC along with Oil India signed a deal to buy 10% stake in the Rovuma Area 1 field in the nation itself. The deal was with Videocon Group for $2.48bn. Chairman of ONGC Videsh Limited (OVL), the firm’s unit which agreed the deal, Mr. Sudhir Vasudeva asserted that the gas field had the “potential to become one of the world’s largest LNG projects”.

Being said to be the “strategically located” field to supply liquefied natural gas (LNG) to India at a “competitive price”, the state-controlled firm will pay Anadarko Petroleum, a US firm, $2.6bn for the stake. Vasudeva further notes that the deal was a significant step “towards the energy security of our country”. India, Asia's third largest economy relies massively on imports to meet its demand and in the coming years the demand is expected to rise, thus, firms like ONGC are looking forward to receive overseas assets to secure long-term supplies.


Post a Comment