India's ONGC to pick up stake in African gas field

Oil pipes India relies heavily on imports to meet the growing domestic demand for fuel

India's biggest oil explorer, Oil and Natural Gas Corporation (ONGC), has agreed a deal to buy a 10% stake in an offshore gas field in Mozambique.

It will pay Anadarko Petroleum, a US firm, $2.6bn (£1.7bn) for the stake.

The state-controlled firm has been keen to secure supplies in an attempt to meet growing domestic demand for fuel.

It said the field in Mozambique was "strategically located" to supply liquefied natural gas (LNG) to India at a "competitive price".

Sudhir Vasudeva, chairman of ONGC Videsh Limited (OVL), the firm's unit which has agreed the deal, said the gas field had the "potential to become one of the world's largest LNG projects".

He added that the deal was a significant step "towards the energy security of our country".

Securing supplies

India, Asia's third-largest economy, relies heavily on imports to meet the domestic fuel demand.

The country has the world's second-largest population. As its economy continues to grow, demand for fuel is expected to rise further in the coming years.

As a result, firms such as ONGC have been looking to acquire overseas assets in an attempt to secure long-term supplies.

This is the second such deal signed by the firm in recent months.

In June, along with Oil India, it agreed to buy 10% stake in the the Rovuma Area 1 field in Mozambique from the Videocon Group for $2.48bn.

Last year, ONGC inked a deal to buy ConocoPhillips's 8.4% stake in Kazakhstan's Kashagan project for $5bn - its biggest overseas acquisition.

More on This Story

Business of Energy

The BBC is not responsible for the content of external Internet sites

More Business stories


Features & Analysis

  • Prostitute in red light district in Seoul, South KoreaSex for soldiers

    How Korea helped prostitutes work near US military bases

  • LuckyDumped

    The rubbish collector left on the scrap heap as his city cleans up

  • A woman gets a Thanksgiving meal at a church in FergusonFamily fears

    Three generations in Ferguson share Thanksgiving reflections

  • Walmart employees and supporters block off a major intersection near the Walton Family Foundation to stage a protest calling for $15 an hour and consistent full-time work in downtown Washington October 16, 2014. Black mark

    Wal-Mart workers revolt against the annual shopping bonanza

From BBC Capital


  • All-inclusive holidaysThe Travel Show Watch

    With all-inclusive holidays seeing a resurgence are local trades missing out to big resorts?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.