Oil group from India may buy stakes in oil block in Mozambique on its own

6 June 2013

Indian state company Oil and Natural Gas Corp (ONGC) may move ahead on its own to buy two 10 percent stakes in the Area 1 block of the Rovuma basin in Mozambique, the group’s marketing director told India’s Hindustan Times.

Acknowledging that buying the two stakes could cost between US$5 billion and US$6 billion, Vasudeva said that the group was in not in talks with any other group to share the buying costs.

The marketing director of ONGC, India’s largest oil group, also said it was not in talks with Shell India and gave assurances that the group did not need a foreign partner to acquire these stakes.

Vasudeva said that a final decision on process by which Indian group Videocon Industries will no longer be part of the consortium that explores the block and US company Anadarko Petroleum will see its stake drop from 36.5 percent to 26.5 percent, which will remain the highest stake in the block.

The block’s remaining shareholders are Japan’s Mitsui & Co. (20 percent), Indian company Bharat Petroleum, with 10 percent, Thai state group PTT with 8.5 percent and Mozambican state company Empresa Nacional de Hidrocarbonetos with 15 percent. (macauhub)