Oil and Natural Gas Corporation Ltd (ONGC) board has approved a true-up amount of up to ₹5,082.39 crore for the Mozambique LNG project, as per the filing. The funding will be spent during FY26 and FY27 through ONGC Videsh’s subsidiaries. The decision was approved at a board meeting held on July 22, 2025.
ONGC Videsh Rovuma Ltd (OVRL) will account for ₹2,117.61 crore in FY26 and ₹1,058.85 crore in FY27. Beas Rovuma Energy Mozambique Ltd (BREML) will handle ₹1,270.62 crore and ₹635.31 crore across the same years. Both are step-down subsidiaries of ONGC Videsh Ltd (OVL).
The Area 1 Mozambique project is located in the Rovuma Basin and is focused on liquefied natural gas (LNG) production. ONGC Videsh holds a 16% participating interest in the project. The stake is managed through OVRL and BREML.
In April 2025, ONGC Videsh initiated a postal ballot to seek shareholder approval for financial undertakings in the Mozambique project. This included a proposal to advance up to ₹1,500 crore from OVL to BREML, which is a joint venture subsidiary.
The project has faced delays due to security-related issues in the region. Activities had previously slowed down or been halted. The company has not provided any update on the exact timeline for restarting operations.
The true-up amount refers to adjustments made for previously estimated costs. This approval is aimed at addressing updated financial requirements for the Mozambique development over the next 2 financial years.
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As of 09:52 AM on July 23, 2025, ONGC share price was trading at ₹246.79, a 0.15% increase.
The ₹5,082 crore true-up will be distributed between two ONGC subsidiaries involved in the Mozambique LNG project. The funds are scheduled to be deployed over FY26 and FY27 as part of the financial adjustments for the overseas asset.
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Published on: Jul 23, 2025, 9:53 AM IST
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