Rovuma Basin Gas Reserves Could be Upgraded

Managing Director of India's ONGC Videsh (OVL), S K Sarraf believes that the initial estimate of 35-65 trillion cubic feet reserve in Mozambique’s Rovuma basin will soon see a significant upward revision.

OVL this month bought 10% stake in gas-rich Rovuma basin from US based Anadarko Petroleum. Earlier this year, OVL bought Videocon's 10% stake in this basin.

Talking about the two acquisitions, Sarraf told Economic Times that as consortium partners, OVL will be able to buy this gas and the long-term plan is to ship LNG to India.

“We will buy this gas at the prevailing market rates from the consortium. But since we are also part-owners and part of the consortium, we will technically be buying from ourselves. So, all the resultant profits will also accrue to us”, he told Economic Times.

He added that OVL also plans to invest in the LNG infrastructure that is being envisioned by all the consortium partners.

“It's too early to put a definite number on the value of these investments. But we do plan to partner in this as we have a long-term strategy of shipping and marketing the gas in India, Sarraf said.