India boosts gas investment in Mozambique with 180 million dollars
India’s state-owned ONGC Videsh Ltd (OVL) has approved a new investment of 180 million dollars in the liquefied natural gas (LNG) project in Mozambique, signaling the resumption of operations in Offshore Area 1 of the Rovuma basin, in Cabo Delgado province. The funding reinforces India’s commitment to energy exploration in the country, following the suspension of activities in April 2021 due to insurgent attacks.
According to company sources, the revocation of the force majeure regime is expected to take place soon, allowing operations to resume. The amount now approved will be channeled to Beas Rovuma Energy Mozambique Limited (BREML), a subsidiary of OVL, in which the Indian state-owned company holds a 60% stake, while the remaining 40% belongs to Oil India Limited (OIL).
Outside of direct investment, OVL also approved a senior loan of 379.3 million dollars, to be granted by the subsidiary OVL Overseas IFSC Ltd (OOIL) to Moz LNG1 Financing Company Ltd (MozLNG1), the entity supporting the financing of the project consortium. The operation will also include financial guarantees provided by OVL.
Rovuma Area 1 covers an area of approximately 2.6 million acres and is home to gas reserves estimated at 75 billion cubic feet. The importance of the project for India lies both in the abundance of resources and the geographical proximity, which facilitates the export of LNG to supply the Indian market.
The shareholder structure of the project reflects a significant presence of India, which controls 30% of the consortium through the following stakes:
ONGC Videsh – 10% direct + 6% indirect via BREML
BPRL Ventures Mozambique BV (subsidiary of Bharat Petro Resources Ltd – BPCL) – 10%
Oil India Limited (OIL) – 4%
The project is led by TotalEnergies, which holds 26.5% of the stake, while other shareholders include Empresa Nacional de Hidrocarbonetos (ENH, 15%), Mitsui E&P Mozambique Area 1 Ltd (20%) and PTTEP Mozambique Area 1 Ltd (8.5%), linked to the Thai state-owned energy company.
With this new funding, the Area 1 project is moving towards its resumption, reaffirming Mozambique as a strategic player in the global energy sector.
