Mozambique Rovuma Offshore Area 1 JV Partners Seal More LNG Sale and Purchase Agreements

ONGC Videsh, a wholly owned subsidiary of ONGC, the National Oil Company of India, has announced that Mozambique LNG1 Company, the jointly owned marketing entity of ONGC Videsh and joint venture partners of Mozambique Rovuma Offshore Area 1 project incorporated at Singapore, has entered into a long-term LNG Sale and Purchase Agreement (SPA) with

a) Tokyo Gas and Centrica LNG Company, a subsidiary of Centrica through a co-purchasing agreement for the sale of 2.6 million tonnes per annum (MMTPA) from the start-up of production until the early 2040s;

b) CNOOC Gas and Power Singapore Trading & Marketing (CNOOC) for 1.5 MMTPA for a term of 13 years; c) Shell International Trading Middle East for 2 MMTPA for a term of 13 years;

d) Bharat Gas Resources, a wholly owned subsidiary of Bharat Petroleum Corp for 1 MMTPA for a term of 15 years and

e) Pertamina, a state owned oil and gas company of Indonesia, for 1 MMTPA for a term of 20 years.

These latest deals build upon previously executed deals for long term offtake of LNG from Rovuma Offshore Area 1 project and take long-term sales to more than 9.5 MMTPA.

Strategically located off the East Coast of Africa, the Mozambique Rovuma Offshore Area 1 project is ONGC Videsh’s key natural gas project. The project is progressing towards developing initially an onshore LNG plant consisting of two LNG trains with total nameplate capacity of 12.88 MMTPA to support the development of the Golfinho-Atum field located entirely within Offshore Area 1. With the approval of the development plan in February 2018, ongoing resettlement implementation activities, site preparation and execution of these SPAs, the project is poised to take FID in H1 2019.

ONGC Videsh holds 16% interest in the Mozambique Rovuma Area-1 Offshore Project out of which 10% PI is held directly by ONGC Videsh and another 6% interest is held through its 60% shareholding in ‘Beas Rovuma Energy Mozambique Limited’ (“BREML”) while the remaining 40% shares in BREML are held by Oil India Limited (‘OIL’). Anadarko Moçambique Área 1, Lda is the Operator of the project with 26.5% PI and the other partners are Mitsui E&P Mozambique Area1 Ltd. (20%), ENH (15%), BPRL (10%) and PTTEP (8.5%).