New Delhi: A liquefied natural gas (LNG) project operated by TotalEnergies in Mozambique, in which Indian oil companies hold a 30% stake, will resume operations by 2024, said G. Krishnakumar, Chairman and Managing Director (CMD) of Bharat Petroleum Corp. Ltd (BPCL).
BPCL is the parent company of one of the Indian companies with stake in the project.
Addressing shareholders at BPCL’s annual general meeting, the CMD said the company is making efforts to monetise the project at the earliest.
The project operator, TotalEnergies, believes that the future of the project depends on the outcome of the Mozambican presidential elections on October 9.
On August 27th, Mint India would reportedly have to wait longer to receive LNG supplies from the $20 billion Mozambique project, with progress expected only after a new government is formed in the East African country following presidential elections.
“The initial 2-train LNG project in Mozambique Area 1, which is the first step towards unlocking the world-class gas resources of approximately 63 trillion cubic feet in which your company has a 10% stake, is all set to resume operations this year,” Krishnakumar told shareholders.
Three Indian state-owned companies own a total of 30% of the project: ONGC Videsh holds 16%; BPRL Ventures Mozambique BV, a subsidiary of BPCL, holds 10%; and Oil India Ltd holds 4%. Total E&P Mozambique Area 1 Limitada, a subsidiary of TotalEnergies, owns 26.5% of the plant and is its operator.
Operations at the ‘Offshore Area 1’ project in the coastal town of Palma were suspended in April 2021, following attacks by Islamic State terrorists.
“The company will maintain its focus and efforts on upstream oil and gas projects, particularly to accelerate the earliest possible monetization of discoveries in Mozambique and Brazil,” the CMD said.
Krishnakumar also said that the BM-SEAL-11 project in Brazil and the Ruwais field in the UAE are currently at key stages of development.
Talking about ‘Project Aspire’, BPCL’s five-year strategic framework that is based on two key pillars, he noted that it would involve a capital expenditure of ₹1.7 billion, including ₹Rs 75 billion for refineries and petrochemicals.
BPCL shares closed on Friday at ₹357.35, 0.25% more than its previous close.
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