Oil India Eyes Stake in Mozambique Gas Field

Oil India is in talks with Mozambique to pick up a stake in Rovuma-1 gas field after a proposed energy policy allowed stakeholders to ship out their share of gas, Economic Times has reported.

"We had a very positive discussion with the visiting Mozambique delegates. We may purchase participating interest in the gas field from one or more existing partners," an Oil India official told the newspaper.

The company is also interested in purchasing 10% stake in the giant gas fields held by Indian firms, officials said. Indian firms Videocon and Bharat Petroleum have 10% stakes each in the offshore block, where the operator, US-based Anadarko Petroleum Corp, estimates about 100 trillion cubic feet of in-place gas reserves.

Industry experts say that Mozambique assets are very lucrative as production cost at the well head of the Rovuma basin could be around $2 per unit, which is huge incentive for investors like Indian companies that may import their shares in the form of liquefied natural gas, Economic Times said.

State-run Oil & Natural Gas Corp (ONGC) and Oil India are eyeing to bid for about a dozen exploration blocks Mozambique is expected to auction in early next year.