Indian energy firm ONGC Videsh Limited (OVL) has agreed to buy a 10% stake in the Rovuma Area 1 block, offshore Mozambique, from Anadarko, for US$ 2,640 million.
Area 1 covers about 2.6 million acres in the deepwater Rovuma Basin and represents the largest gas discovery in offshore East Africa, with estimated recoverable resources of 35-65 Tcf, said ONGC.
The acquisition, which is subject to regulatory approval, follows an earlier deal which saw OVL and Oil India Limited (OIL) jointly buy 10% interest in Area 1 from Videocon Mauritius Energy.
OVL said the Area 1 LNG project would be able to supply LNG to India’s growing gas market.