India’s Videocon Industries plans to take out loan to develop project in Mozambique

10 July 2012

Indian company Videocon Industries Ltd, a company controlled by millionaire Venugopal Dhoot, plans to take out a loan of up to US$1.4 billion to fund the development of energy assets in Mozambique, financial news agency Bloomberg reported.

Citing a source close to the process, the news agency reported that the loan would be provided by the IDBI Bank and by SBI Capital Markets Ltd.

Videocon Industries, which is based in the Indian city of Aurangabad, has a 10 percent stake in a gas field in the Rovuma basin, in northern Mozambique, which is operated by US group Anadarko Petroleum, and where large natural gas reserves have been found.

Videocon Industries had previously announced that it would set up a private investment fund worth around US$1 billion, and that the funding would be secured from national and foreign investors.

The oil block in the Rovuma basin is operated by US group Anadarko Petroleum, which has a stake of 36.5 percent, and the remaining partners are Japan’s Mitsui & Co., with 20 percent, India’s Bharat Petroleum Corporation Limited and Videocon, with 10 percent each, Mozambique’s ENH (15 percent) and Cove Energy (8.5 percent). (macauhub)