Anadarko Sells Assets to ONGC
India’s Oil and Natural Gas Corporation (ONGC.NS) has purchased a 10 percent stake in Anadarko Petroleum Corporation’s (NYSE: APC) African offshore gasfield for $2.64 billion. The deal leaves Anadarko as operator and with a 26.5 percent stake. According to ONGC, the purchase includes stake in the Area 1 field in Mozambique, which could end up being one of the most productive liquefied natural gas projects to supply the Indian market. While ONGC gains access to a high potential of production, Anadarko benefits from this deal by minimizing their risk and receiving guaranteed income from the play.
China’s Foreign Energy Dependence
Energy consumption in China is at an all time high. The country’s demand for coal has risen more than 50 percent in the last decade, and accounts for close to half of global consumption. But China’s demand for coal pales in comparison to their demand for natural gas – natural gas consumption in the country has jumped 346 percent since 2002. As demand continues to increase, China is looking to foreign nations for it’s energy dependence, and is already building strong relationships with this Canadian LNG company.