ONGC Videsh Limited (OVL), the international arm of Oil and Natural Gas Corporation Limited (ONGC), the National Oil Company of India, approved, at the end of March, funding of 180 million dollars (Rs 1,500 crore) for a Liquefied Natural Gas exploration project, headed by the French multinational TotalEnergies.

The amount will be channeled to Beas Rovuma Energy Mozambique Limited (BREML), a subsidiary of OVL, where it holds 60% of the capital, while the remaining 40% belongs to state-owned Oil India Limited (OIL).

This decision is in line with that taken by other project partners, namely the Exim Bank of the United States of America, which authorized the disbursement of five billion dollars for the development of the project.

From the Indian perspective, as the partners send out positive signals for the TotalEnergies project, we can expect the lifting of the Force Majeure, which has suspended the development of activities since 2021, to take place sooner rather than later.

With the funding, the ONGC Videsh focuses on accelerating development the infrastructure needed to produce and export LNG, especially to Asian markets, which are expected to drive demand for LNG in the coming decades.

TotalEnergies has more than half the value for the gas exploration project

ONGC Videsh holds 16% net interest in the Mozambique Rovuma Area 1 Offshore Project, of which 10% of IP is held directly by ONGC Videsh and another 6% of interest is held through its 60% shareholding in 'Beas Rovuma Energy Mozambique Limited' ("BREML"), while the remaining 40% of BREML shares are held by Oil India Limited ("OIL").