Oil India expects to restart the Mozambique Liquefied Natural Gas project within a year
India's state-run Oil India Ltd expects a $20-billion, TotalEnergies-operated Mozambique liquefied natural gas project in which it owns a stake to restart development by the end of this year, its chairman Ranjit Rath said on Thursday.
TotalEnergies suspended construction and declared force majeure on the project in 2021 after a deadly insurgent attack at the site.
Rath, at the annual shareholders meeting, said that with improved security conditions the project should restart in the second quarter of 2025. It is also well positioned to meet the increasing demand for gas on the Indian market.
Patrick Pouyanne, CEO of TotalEnergies, said in June that he expects development to resume this summer.
TotalEnergies, with a stake of 26.5%, is the project operator, followed by Mitsui & Co, with 20% and Mozambique’s state-owned ENH, with 15%.
The project is owned by PTTEP, a Thai company, and three Indian state-owned firms, ONGC Videsh Bharat PetroleumResources, and Oil India. Together, they own 30% of the project.
Explorer Oil India holds a minor stake in Vankorneft, Taas-Yuryakh and other projects in Russia.
Rath stated that Oil India received dividends equal to 91% its investment in Russian projects.
He said that the dividends from Russian assets totaled $942 million. This represents over 91% our initial investment in Vankorneft, Taas-Yuryakh and other Russian assets. Full recovery is expected to occur in the next year.
(source: Reuters)
