ONGC Videsh Puts Mozambique LNG Project On Hold

ONGC Videsh consortium has put its liquified natural gas (LNG) project in Mozambique on hold due to force majeure.

ONGC Videsh Puts Mozambique LNG Project On Hold

ONGC Videsh consortium has put its LNG project in Mozambique on hold

State-owned ONGC Videsh consortium has put its liquified natural gas (LNG) project in Mozambique on hold due to force majeure, arising out of the escalating security situation in that country.

"Considering the evolution of the security situation in the north of the Cabo Delgado province in Mozambique, the Area 1 Operator Total E&P Mozambique Area 1 Limitada informed the withdrawal of all Mozambique LNG project personnel from the Afungi site. This situation leads Total E&P Mozambique Area 1 Limitada, as operator of Mozambique LNG project, to declare force majeure," ONGC said in a statement.

ONGC Videsh, which is the overseas arm of the Maharatna oil explorer ONGC, holds 16 per cent participating interest in the Area 1 concession through its subsidiaries ONGC Videsh Rovuma (OVRL) and Beas Rovuma Energy Mozambique (BREML).

Earlier ONGC had said that it will invite foreign partners to explore the blocks that the company has been allotted under Category-II and Category-III basins.

"ONGC is also looking into strategic relationships and close alliances with key international players through ONGC Videsh," the company said in a statement. "Intention is to invite foreign participations to explore Category-II and Category-III basins which match size and scale of expectations and portfolio of these large players' it added further.