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9 Pages

ONGC and Oil India the latest big spending NOCs to enter Mozambique LNG


ONGC and Oil India the latest big spending NOCs to enter Mozambique LNG

Report summary

ONGC and Oil India are to pay US$2.475 billion for Videocon's 10% interest in Area 1. This marks the third deal in Mozambique's emerging LNG play in a little over 12 months - all with NOC buyers. The bid represents an 18% premium (pro-rata) to PTT and CNPC's earlier acquisitions, and reinforces our view that access to Mozambique LNG comes at a high price. Our analysis of underlying deal economics suggests that the buyers are making bold assumptions on the scale and timing of ...

What's included?

This report includes 1 file(s)

  • ONGC and Oil India the latest big spending NOCs to enter Mozambique LNG PDF - 1.09 MB 9 Pages, 4 Tables, 4 Figures

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
    • Capital Gains Tax
  • Upstream assets
    • Area 1
    • Valuation
      • Precendent transactions
      • Wood Mackenzie valuation
      • Recent modelling changes
    • Key Uncertainties
      • Project structure
      • Market appetite and pace of development
      • Partner alignment
      • LNG leadership
      • Further M&A
      • LNG pricing
  • Strategic rationale
    • ONGC Videsh
    • Oil India
    • Videocon
  • Oil & gas pricing and assumptions

In this report there are 8 tables or charts, including:

  • Executive summary
  • Transaction details
  • Upstream assets
    • WoodMac NPV sensitivities, 10% interest; development scenario, discount rate and LNG price (2013 terms)
    • Upstream assets: Table 1
    • Upstream assets: Table 2
  • Strategic rationale
    • Production assumptions under an eight Train upside scenario and impact on ONGC overseas production
    • Mozambique Area 1 and Area 4 Map
    • Strategic rationale: Image 3
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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