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