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India,Mozambique : INDIAN state-companies' investments of over $5B in MOZAMBIQUE in trouble

August 23, 2014

Investments exceeding $5 billion by three of India's state-owned companies in Mozambique's massive gas field Rovuma Area 1 are at risk with the local government failing to validate a remunerative financial regime so far.

The financial regime, which was never finalized, has now got held up because of elections in Mozambique on October 15th, though the project has been in the making for several years.

While Bharat PetroResources made an investment of $75 million in 2008, ONGC Videsh and Oil India invested a huge amount of $5.1 billion in 2013 when they acquired Videocon's 10% stake in the field along with an additional 10% from the main operator Anadarko, a US company.

Production could get delayed considerably beyond the initial date of 2018, if the new Mozambique government concludes an acceptable concession deal, which is the best-case scenario.

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Source: TendersInfo (India)

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