Indian state-owned company Oil and Natural Gas Corporation Ltd (ONGC) has approved a financial adjustment of approximately 3 billion meticais (61 million US dollars) to strengthen the funding of its subsidiaries involved in the Area 1 Liquefied Natural Gas (LNG) Project in the Rovuma Basin, northern Mozambique, Khabar India reported on Friday, July 25.
According to a statement sent to the Indian stock exchange on July 22, the amounts are to be disbursed between the 2025–2026 and 2026–2027 fiscal years by ONGC Videsh Rovuma Ltd (OVRL) and Beas Rovuma Energy Mozambique Ltd (BREML), both subsidiaries of ONGC Videsh Ltd (OVL), which holds a 16% stake in the consortium led by TotalEnergies.
According to the released data, BREML is expected to invest around 1.2 billion meticais (15.3 million dollars) in 2025–2026 and 635 million meticais (7.6 million dollars) in 2026–2027. OVRL will be responsible for approximately 2.1 billion meticais (25.6 million dollars) in 2025–2026 and 1 billion meticais (12.8 million dollars) the following year, totaling the approved adjustment.
These amounts correspond to financial adjustments related to the project’s estimated costs, which have faced delays since 2021 due to insecurity in Cabo Delgado, the province where the work is being carried out.
In April 2025, ONGC submitted a set of financial transactions related to its operations in Mozambique for shareholder approval via postal voting, including an advance of around 1.5 billion meticais (18 million dollars) from OVL to BREML. The Area 1 LNG Project is considered one of the largest foreign investments in Africa, with a projected production of 13.1 million tonnes of LNG per year from the Rovuma Basin reserves. Its realization is seen as strategic for global energy diversification, especially for India.
Meanwhile, in May, market analysts estimated a potential 50% increase in ONGC’s share value following the release of financial results for the last quarter of the 2024–2025 fiscal year. The company recorded a net profit of around 6.2 billion meticais (77.5 million dollars) in the March quarter, below the 8.8 billion meticais (106 million dollars) expected by the market and a 22% drop from the 7.9 billion meticais (99 million dollars) of the previous quarter. Despite the pressure on earnings, ONGC remains committed to revitalizing its international projects, with a particular focus on the Mozambique venture, which continues to represent a strategic asset for the country’s and the region’s energy future.
Source: Diário Económico
