Oil and Natural Gas Corporation Limited (ONGC) has issued a Postal Ballot Notice to its members seeking approval for two material related party transactions concerning the Area-1 Offshore Mozambique Project. These transactions are crucial for restructuring the project's commercial framework and facilitating financing. The first special business item involves the approval of material related party transactions for the Area-1 Offshore Mozambique Project - AssetCo Structure. This includes the transfer of Golfinho-Atum project-related assets to Moz LNG1 AssetCo, Limitada, and subsequent equity-for-equity transactions with Moz LNG1 HoldCo, Limitada. The estimated value of this transaction is approximately USD 2,440 million (₹231,800 crore). The second special business item pertains to the approval of material related party transactions for the Area-1 Offshore Mozambique Project - Debt Service Undertaking. This involves extending the existing guarantee support in the form of a Debt Service Undertaking (DSU) to senior creditors, principally to guarantee repayment of the proportionate share of senior debt obligations up to 2033. The value for this undertaking is not exceeding USD 3,072 million (₹291,840 crore). The remote e-voting period for these resolutions will commence on Thursday, June 4, 2026, at 10:00 AM (IST) and will conclude on Friday, July 3, 2026, at 05:00 PM (IST). The notice is available on ONGC's website and the NSDL e-voting portal. These transactions are considered material as per SEBI (LODR) Regulations, 2015, and require shareholder approval. The revised structure aims to align with customary international project financing structures, offering benefits such as appropriate accounting treatment, regulatory/debt management advantages, and increased flexibility for future project development.
