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

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01 July 2013

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 ...

Table of contents

  • Executive summary
    • Capital Gains Tax
    • 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
    • ONGC Videsh
    • Oil India
    • Videocon
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 8 images and tables including:

  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2
  • 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
  • WoodMac NPV sensitivities, 10% interest; development scenario, discount rate and LNG price (2013 terms)
  • Upstream assets: Table 1
  • Upstream assets: Table 2

What's included

This report contains:

  • Document

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

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