ONGC, OIL sign $2.47bn deal in Mozambique gas field

India's state-owned Oil and Natural Gas Corp. and Oil India Ltd. signed a $2.47 billion definitive agreement to acquire a stake in a gas field in Mozambique. Under the agreement signed Tuesday in Singapore, the two will buy Videocon Mauritius Energy Ltd.'s 10 percent stake in the Rovuma Area 1 Offshore Block in Mozambique, the companies announced on their website. "Area 1 covers approximately 2.6 million acres in the deep-water Rovuma Basin offshore Mozambique and represents the largest gas discovery in offshore East Africa with estimated recoverable reserves of 35 [trillion] to 65 trillion cubic feet," the companies said. Area I was described as having the potential to become one of the world's largest liquid natural gas producing hubs with the first production expected by 2018. The partners in the field include Anadarko, a U.S. company that operates the project with a 36.5 percent interest, India's Economic Times reported. Others include Japan's Mitsui & Co. Ltd., Thailand's state oil company PTT Exploration and Production and Mozambique's state-owned ENH 15 percent. The transaction is expected to close in the fourth quarter subject among others to approvals by the governments of Mozambique and India, the companies said. The companies said Area 1 is strategically located to supply LNG to India and will facilitate access of LNG to the growing Indian gas market.