New Delhi: The Board of Directors of Oil & Natural Gas Corporation (ONGC) has approved the investment of Rs 1,500 crore in one or more tranches by ONGC Videsh Limited (OVL) in Beas Rovuma Energy Mozambique Limited (BREML), said a regulatory filing to the stock exchanges on Tuesday. BREML is a subsidiary of OVL with 60 percent shareholding and the remaining 40 percent stake is with the other joint venture partner, OIL India Limited (OIL).
The board also approved sponsoring of senior loan by OVL Overseas IFSC Ltd (OOIL) to Moz LNG1 Financing Company Ltd (Moz LNG1) of up to USD 379.30 million (~ Rs 32,707.04 million) for Area 1 Mozambique Project. OOIL is a wholly-owned subsidiary of OVL and MozLNG1 is an associate of the ONGC Videsh Rovuma Limited (OVRL) another wholly-owned subsidiary of OVL.
The company will also extend guarantee support to MozLNG1 against sponsor senior loan of upto USD 379.30 million, said the regulatory filing.
ONGC Videsh holds 16 percent interest in the Mozambique Rovuma Area-1 Offshore Project, out of which 10 percent participating interest is held directly by ONGC Videsh and another 6 percent interest is held through its 60 percent shareholding in BREML. Covering approximately 2.6 million acres, Offshore Area 1 is located within the Rovuma Basin, approximately 40 km offshore northern Mozambique.
The Offshore Area 1 hosts the Prosperidade and Golfinho/Atum complexes that feature several deep-water discoveries, including Windjammer, Barquentine, Lagosta, Camarao, Golfinho, Orca and Atum. The gas fields together are estimated to hold approximately 75 trillion cubic feet (Tcf) of recoverable natural gas.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)