India's ONGC buys stake in Mozambique gas field

India's energy giant ONGC is buying a 10 percent stake in an offshore Mozambique natural gas field for $2.64 billion from the field's US operator Anadarko Petroleum, the two companies said. The exploration block, known as Offshore Area 1, is in the deepwater Rovuma Basin and estimated to contain 35-65 trillion cubic feet of recoverable gas. The project is being developed to support Mozambique's large liquefied natural gas program, which aims to begin shipping LNG cargoes in 2018. "Mozambique LNG is a premier global energy project, and we look forward to working with our partners and the government to advance this world-class development," said Anadarko chairman and chief executive Al Walker in a statement late Sunday. Walker said the deal allows Anadarko to monetize some of its original investment, bringing back capital for investment in other projects. The deal marks one of Oil and Natural Gas Corp.'s largest offshore investments. The block is adjacent to one operated by Italy's Eni, which also will be a part of the LNG project. Earlier this month China National Petroleum Corp. set a deal to buy a 20 percent stake in that block, known as Area 4, for $4.21 billion.