No Covid-19 impact on $24 billion Mozambique project: BPCL


Covid-19 will not delay state-run Bharat Petroleum Corporation Ltd BPCL’s plan to bring to India the much-awaited natural gasnatural gas from its Rovuma basin in Mozambique by 2024, said company officials today.

BPCL through its upstream arm, Bharat Petro Resources Ltd (BPRL) holds 10% stake in the Rovuma Basin and plans to bring in 1 million metric tonnes per annum (mmtpa) of gas from the fields to India.

Financial closure for project completed

“Financial closure for the project has been completed. Work is in progress. There are some disturbances on account of covid-19 but our partners have said the schedule for the first energy cargo for 2024 is still on,” said Venugopal, Director Finance, BPCL while addressing a post annual general meeting conference.

Total E&P Mozambique Area 1 Limitada, a wholly owned step-down subsidiary of Total S.A. is the Operator with 26.5% PI and the other consortium partners are Mitsui E&P Mozambique Area 1 Limited (20%), ENH Rovuma Área Um, S.A. (15%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%) and PTTEP Mozambique Area 1 Limited (8.5%).

On 15th July, Area 1 partnership finalized senior debt financing of $14.9 Billion to advance the 2-Train LNG project. The senior debt comprises of a mix of Export Credit Agencies (ECA) Direct Loans, ECA Covered Facilities, Commercial Bank facilities, and a loan facility with one multilateral development institution.

The total cost is estimated at $24.1 billion and is to be funded through a combination of debt ($15.8 billion), equity ($7.4 billion) and cash flow from operations ($0.8 billion).

BPCL has signed a sales and purchase agreement with Mozambique LNG1 Company to bring the gas to India.

Indian firms hold a total of 30% stake in Area-1, which has around 75 trillion cubic feet of recoverable gas resource.

ONGC Videsh Ltd (OVL), the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), holds 16% stake in Area-1, while Oil India Ltd holds 4% stake.

Total is the operator of the project with 26.5% stake while Mitsui of Japan at 20%. PTT Exploration of Thailand holds 8.5% and Mozambique’s oil and gas company, ENH the remaining 15% stake in the project.

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