About 1 million (mmtpa) of gas will be brought in from the Rovuma field where BPRL, its upstream arm, has 10 percent stake
Mumbai: The eagerly anticipated natural gas from Bharat Petroleum Corporation Ltd (BPCL)'s Rovuma basin in Mozambique will be brought to India by the state-run refiner in the coming five years, sources said. About 1 million metric tonnes per annum (mmtpa) of gas will be brought in from the Rovuma field where Bharat Petro Resources Ltd (BPRL), its upstream arm, has 10 percent stake.
Mozambique LNG1 Company is owned by the partners of Mozambique Offshore Area 1, which is run by the Anadarko Mozambique Area with a 26.5 percent stake. Other partners comprise Mitsui E&P Mozambique Area 1 (20 percent), ONGC Videsh (16 percent), National Oil Company Empresa Nacional de Hidrocarbonetos (15 percent), Bharat PetroResources (10 percent), PTTEP Mozambique Area 1 (8.5 percent), and Oil India (4 percent).
According to a report published in Mint, a source said, "BPCL will sign a sales and purchase agreement with Mozambique LNG1 Company to bring the gas to India. BPRL holds 10 percent stake in Mozambique LNG1 company which was formed to market the gas."
The chairman of Mozambique's national oil company ENH said a final investment decision (FID) for the block is likely to be ready by in April, adding that the project would be financed in a debt-to-equity ratio of 60:40. An FID for the block in Mozambique permits the partners to unlock value in one of the biggest gas discoveries in the world, estimated to be 75 trillion cubic feet.
"One of the Indian companies has already signed a share and purchase agreement for the gas. The first molecules will come to India by 2024," said ENH chairman Omar Mitha, who added that Mozambique is a strategic location for Indian natural gas imports, with no geopolitical challenges of the Middle East.