Videocon Industries and BPCL have climbed higher by 6 percent and 2.8 percent, respectively in mid-morning trade after Texas-based Anadarko Petroleum Corp announced a significant natural gas find in the offshore Area 1 of the Rovuma Basin in Africa. The Mozambique gas discoveries may hold up to 100 trillion cubic feet of in-place reserves.
The find is expected to benefit companies that have a stake in the gas block. Videocon and Bharat Petroleum hold 10 percent each through wholly owned subsidiaries in six blocks in the deep-water Rovuma Basin, which is off the Mozambique coast.
According to the report, this is the second-major natural gas complex, making it one of the largest gas discoveries in the world in decades. "We believe the total estimated recoverable natural gas resource in Mozambique's Offshore Area 1 is between 30 and 60 Tcf (trillion cubic feet), and the current upside for total gas in place for the discovered reservoirs on the block is approaching 100 Tcf," Anadarko's chief executive, Al Walker, said in a statement.
According to The Economic Times, the new discovery would make the basin's reserves 20 times the size of India's KG-D6 and make Mozambique a major exporter of liquefied natural gas (LNG). Around 10 trillion cubic feet would be enough to meet an entire year's gas consumption by France, Germany, Britain and Italy, as per Reuters.
This gas boost is also a major find for Africa as it could easily catapult it into the league of top gas exporters in the world.