|Transocean’s Deepwater Millennium is performing an accelerated well testing program that includes installing observation gauges and conducting several drill stem tests for Anadarko’s natural gas wells offshore Mozambique.|
The Orca-1 discovery well encountered approximately 190 net feet of natural gas pay in a Paleocene fan system.
Videocon Industries has sold off to ONGC Videsh and Oil India (OIL) for $2.48 billion (Rs 14,880 crore) its 10 per cent interest in the prolific oil and gas offshore block in Mozambique’s Rovuma basin. The deal is expected to help Videocon reduce its huge debt and provide a piece of pie to the two Indian oil and gas explorers chasing resources abroad.
ONGC Videsh, the wholly owned subsidiary of Oil and Natural Gas Corporation (ONGC), and OIL expect to implement the acquisition through a newly incorporated entity in which OVL would hold 60 per cent stake while OIL would have 40 per cent stake by the end of this financial year.
The largest deal of the quarter involved ONGC and Oil India, who acquired a 10% stake in the 100+ tcf gas discovery offshore Mozambique in the Rovuma basin for $2.5 billion from Videocon Industries. The $0.50 cost per recoverable mcf of gas reserves would usually represent good value but commercialization of the asset is at least five years away and will require large upfront payments to develop the field and construct the necessary LNG exporting terminal which would have made this field fall short of many public companies’ investment appraisals. The deal follows the acquisition of Cove Energy at the end of 2012 when another national oil company, PTT, keen to gain control of the company’s flagship asset of an 8.5% interest in the Rovuma Offshore Area 1, paid $2.2 billion.