(ET)
Oil and Natural Gas Corp, Bharat Petroleum and Oil India have begun making their share of payment of about $2 billion towards the much-delayed Mozambique liquefied natural gas (LNG) project. Three state-run firms have a combined 30% participating interest in the Mozambique gas project, which made a final investment decision last year to spend about $15 billion on developing gas fields and liquefaction project. About 60% of the project cost is planned to be funded by debt while the balance 40% would be shared as equity contribution by all stakeholders proportionately. Of the $6 billion equity component, Indian firms will contribute about 30% or a little less than $2 billion.ONGC, which owns 16% participating interest in the project, will have to pay about $1 billion while BPCL and Oil India with their 10% and 4% interest, respectively, will contribute a little less than $1 billion together, according to people familiar with the matter.
