Indian partnership to pay US$2.5 billion for 10 pct of Mozambican oil block

11 June 2013

Indian companies ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) have made a joint offer of US$2.5 billion for a 10 percent stake owned by India’s Videocon Industries in the Area 1 block of Mozambique’s Rovuma basin, the Indian press reported.

The ONGC group, which controls ONGC Videsh Ltd, issued a statement announcing the deal, but later retracted it noting that the deal would be announced later this week.

The statement said that ONGC Videsh, the group company for international business, had signed an agreement with Videocon Mauritius Energy to acquire the entire stake of Videocon Mozambique Rovuma Area 1 Ltd for US$2.475 billion.

Later, OVL announced that negotiations with Videocon Industries continued and that the agreement signed would have to be approved by the governments of Mozambique and India as well as those of the remaining partners in the oil block.

The stake will be acquired by a partnership between OVL and OIL, according to a previous statement, in which OVL has a 60 percent share and OIL the remaining 40 percent. (macauhub)