(Ecofin Agency) - In Mozambique, the government has agreed to grant ONGC Videsh Ltd (OVL), the right to recover costs for one of its project in the country.

Indeed, the company is to construct in Mozambique, a Liquefied Natural Gas (LNG) terminal to store gas products which are to be exported.This project is expected to be one of the biggest worldwide, with a capacity to produce 20 million tons of LNG every year.

OVL in partnership with Oil India Ltd. (OIL) had acquired Videocon’s stake in Offshore Area 1 in the Rovuma Basin. Afterwards, OVL purchased an extra 10% stake from Anadarko Petroleum in the block.

This two acquisitions reached an overall amount of $5.115 billion. The 10% stake acquired from Videocon by OVL and OIL is being divided at a 6:4 ratio. Therefore, OVL’s total payout for joint acquisitions is $4.125 billion, Petroleum Africa reports.