End of Force Majeure in Area 1 Mozambique LNG Project

ONGC Videsh Limited, the Wholly Owned Subsidiary (WoS) and overseas arm of Oil and Natural Gas Corporation Limited (ONGC), the premier National Oil Company holds 16% interest in the Area 1 concession through its subsidiaries ONGC Videsh Rovuma Limited (OVRL) and Beas Rovuma Energy Mozambique Limited (BREML).

Total E&P Mozambique Area 1 Limitada, a WoS of TotalEnergies SE, operates Mozambique LNG with a 26.5% Participating Interest (PI). Other Partners' PI are ENH Rovuma Area Um, S.A. (15%), Mitsui Rovuma Offshore Area1 Limited (20%), OVRL (10%), BREML (10%), BPRL Ventures Mozambique B.V. (10%) and PTTEP Mozambique Area 1 Limited (8.5%).

During the construction of 13.12 MMTPA LNG project, due to the deterioration of the security situation in the north of Cabo Delgado province, the Area 1, Mozambique LNG Project issued a declaration of Force Majeure in May 2021 and suspended the construction activities that had commenced in 2019.

Security situation in Cabo Delgado Province (CDP), north of Mozambique, Area 1 Mozambique LNG Project has significantly improved, and Area 1 Mozambique LNG consortium has accordingly notified the Govt of Mozambique to end the Force Majeure which was declared on 11 May 2021. Withdrawal of the Force Majeure enables construction activities to restart for early completion of project.

Shares of Oil & Natural Gas Corporation Limited was last trading in BSE at Rs. 253.80 as compared to the previous close of Rs. 249.45. The total number of shares traded during the day was 634081 in over 9214 trades.

The stock hit an intraday high of Rs. 255.50 and intraday low of 250.05. The net turnover during the day was Rs. 160956666.00.

Source : Equity Bulls

Keywords

OilandNaturalGasCorporation INE213A01029 ONGCVidesh Exploration Production Update MozambiqueLNGProject