ONGC Videsh, the international arm of Indian state-owned oil company ONGC, announced plans to begin production of Liquefied Natural Gas (LNG) at the Area 1 megaproject by the end of 2027 or early 2028, in an investment valued at 20 billion USD (1.28 billion meticais).
According to an article published Thursday, May 22, by the news portal Financial Express, the information was disclosed by ONGC Videsh CEO Rajarshi Gupta during a conference with analysts. He stated that “work has already started” and that the company is “confident” about the project becoming operational within the projected timeline. The lifting of the ‘force majeure’ status—imposed since April 2021 due to insurgent attacks in Cabo Delgado—is seen as imminent, which will allow for the full resumption of activities.
ONGC Videsh holds a 10% stake in the consortium leading the Area 1 project, considered one of the largest foreign investments in the country. The Indian company recently strengthened its presence in Mozambique by approving an additional investment of 180 million USD (11.5 billion meticais) in Beas Rovuma Energy Mozambique Limited (BREML), a subsidiary in which it holds a 60% share alongside OIL India Limited (40%). The project has the potential to turn the country into one of the world’s leading LNG exporters and is expected to benefit significantly from improved security conditions in Cabo Delgado, where joint operations by Mozambican and international armed forces have been visibly reinforced.
In addition to its LNG focus, ONGC Videsh is diversifying its operations. According to ONGC Group Chairman Arun Kumar Singh, the company is increasing its investment in renewable energy, targeting 10 gigawatts (GW) of installed capacity by 2030. It currently holds 2.5 GW.
The company has set a capital expenditure (capex) budget between 3.6 and 4.2 billion USD (230 to 270 billion meticais) for the 2025–26 fiscal year, primarily aimed at hydrocarbon exploration and production as well as expanding its clean energy segment.
Despite optimism for the future, ONGC recorded a 20% drop in consolidated net profit in the fourth quarter of the 2024–25 fiscal year, to 1.06 billion USD (67.8 billion meticais), compared to 1.33 billion USD (84.9 billion meticais) in the same period last year. Nonetheless, oil production from OVL, the group’s international unit, rose slightly by 1.2%, reaching 7.265 million metric tons, thanks to strong performance in strategic assets in Colombia and South Sudan. The company expects its total oil and gas production to increase in the coming years, driven by the KG 98/2 block in India, which is nearing peak production capacity.
With Mozambique in the spotlight, ONGC Videsh reaffirms the country’s strategic importance on the global energy map and positions itself as one of the main international partners in the exploration of Mozambique’s vast natural resources.
Source: Diário Económico
