India’s state-owned Oil and Natural Gas Corporation (ONGC) has acquired a 10% stake in an offshore gas field in Mozambique.
It is paying $2.6 billion to U.S. firm Anadarko Petroleum.
ONGC said the Mozambique field is strategically located for supplying liquefied natural gas to India.
Texas-based Andarko will retain a 26.5% stake in the field, known as Area 1, and continue as operator.
Area 1 includes 2.6 million acres of ocean estimated to have between 35 and 65 trillion cubic feet of natural gas.
Anadarko said Sunday it will reinvest the sale proceeds from the cash deal into development of U.S. acreage, including the Wattenberg field, Eagle Ford shale, Permian and Powder River basins.
Sudhir Vasudeva of ONGC Videsh Limited said the Mozambique gas field has the potential to become one of the world’s largest LNG projects.