Oil and Natural Gas Corp’s (ONGC) giant gas field in Mozambique holds 50 to 70 trillion cubic feet (Tcf) of recoverable reserves, 43 % more than the minimum estimated resources when it invested USD 4.12 billion.
ONGC Videsh Ltd, the overseas arm of state-owned ONGC, bought a 16 % stake in the offshore Rovuma Area-1 over the past one year. Oil India has a 4 % stake and a unit of Bharat Petroleum Corp (BPCL) owns 10 % in the block.
“Successful appraisal drilling activities in the Orca field increased the total estimated recoverable resources in Offshore Area-1 to a range of 50 to 70-plus Tcf of natural gas,” BPCL said in a filing to the stock exchanges quoting block oerator Anadarko Petroleum Corp of US.
The resource estimation is higher than 45 to 70 Tcf range Anadarko had given in March and 35 to 65 Tcf range when OVL bought stake in the block last year.
OVL teamed up with Oil India last year to buy Videocon’s 10 % in Rovuma Area 1 for USD 2.475 billion. It later bought another 10 % stake in the field on its own from Anadarko for USD 2.64 billion.