Transfer of stake in oil block taxed by Mozambique

18 February 2013

The transfer of the 10 percent stake owned by Videocon Hydrocarbon Holdings in block 1 of the Rovuma basin, in Mozambique’s Cabo Delgado province, to Videocon Mauritius Energy has been taxed by Mozambique, the Tributary Authority said in Maputo.

Videocon Hydrocarbon Holdings, which was set up in 2009 with headquarters in the Cayman Islands, controlled Videocon Mozambique, which was the official holder of the 10 percent stake in the block, as well as other stakes in the oil sector, and in its turn is controlled by Indian group Videocon.

In the statement the Mozambican Tributary Authority said that the transfer of the stake was taxed on a corporate level, although it did not reveal the amount of tax charged on the transaction.

The Mozambican oil block in question is operated by US oil 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 has 15 percent and Thailand’s PTT, which owns 8.5 percent.

“The Mozambican Tributary Authority maintains a firm commitment to continue with activities to comply with tributary law on transactions involving capital gains, in partnership with all the relevant entities,” said the statement published in Maputo. (macauhub)