Reports indicate that Oil and Natural Gas Corp (ONGC) does not face any constraint in funding the acquisition of a 20 percent stake in the Rovuma basin gas block in Mozambique.
Therefore, the company does not intend to rope in
a global player to share the cost of acquisition of the stake in the block, which holds up to 60 trillion cubic feet (tcf) of gas. The company is expected to shell out $5-6 billion for picking up the stake.
It may be recalled that ONGC is discussing with both Videocon Industries and US’ Anadarko Petroleum to buy out their respective 10 percent stake in the block. Shell is said to be eyeing a 10 percent stake in the block.
Meanwhile, ONGC is in the process of finalising an investment of Rs 25,000 crore for putting up a gas-processing terminal in Maharashtra along with a gas-based fertiliser plant or a 2,200-mw power plant.
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