Deal Insight
ONGC and Oil India the latest big spending NOCs to enter Mozambique LNG
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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
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Transaction details
- Capital Gains Tax
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Upstream assets
- Area 1
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Valuation
- Precendent transactions
- Wood Mackenzie valuation
- Recent modelling changes
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Key Uncertainties
- Project structure
- Market appetite and pace of development
- Partner alignment
- LNG leadership
- Further M&A
- LNG pricing
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Strategic rationale
- 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:
