ONGC, BPCL strike it rich in Mozambique

State-run Oil and Natural Gas Corp (ONGC) and Bharat Petroleum (BPCL), which together hold a 26-per cent stake in American energy company Anadarko's Mozambique offshore gas field saw their stock rise after the US company raised its gas estimates from the field to 50 to 70 plus trillion cubic feet (tcf) from 40 to 70 plus tcf.

ONGC holds 16 per cent stake in the 'Offshore Area One' block while BPCL has 10 per cent stake in the field.

Bharat PetroResources (BPRL), the wholly-owned subsidiary of BPCL, has informed BPCL that the operator of the offshore Area 1 block in the Rovuma Basin, Mozambique, Anadarko Mocambique in its first quarter 2014 results has revised upward its estimates of recoverable resources in the block to a range of 50 to 70-plus trillion cubic feet of natural gas, BPCL said in a statement.

In addition, BPCL said, the consortium continued to advance the Mozambique LNG project by adding incremental non-binding LNG off-take agreements.

The consortium members in the block are Anadarko Mocambique Area 1 (26.5 per cent), BPRL Ventures Mozambique BV (10 per cent), ONGC Videsh (10 per cent), Beas Rovuma Energy Mozambique (10 per cent), Cove Energy Mozambique Rovuma Offshore (8.5 per cent) and Mitsui E&P Mozambique Area 1, (20 per cent). The balance 15 per cent is with Empressa Nacional de Hidrocarbonetos EP (ENH), the national oil company of Mozambique.

Shares of ONGC and BPCL rose on Wednesday, a day after the Anadarko's first quarter 2014 report revised upward its estimates of gas reserves in their Mozambique asset.

The BPCL stock rose 12.40 points or 2.64 per cent to Rs479.80 from its previous close of Rs467.45. The ONGC scrip grew by 2.00 points or 0.59 per cent at Rs338.95 from its previous close of Rs336.95.