Indian group ONGC buys another 10 pct of Mozambican oil block

26 August 2013

US oil group Anadarko Petroleum plans to sell a 10 percent stake in an oil block in Mozambique to a subsidiary of India’s Oil & Natural Gas Corp (ONGC) for US$2.64 billion in cash, the group said in a statement issued Sunday.

The deal, which is due to be concluded before the end of the year, is the second in a short space of time that ONGC Videsh, the company’s subsidiary for foreign businesses, has carried out in the same block of the Rovuma basin in northern Mozambique.

Recently, ONGC Videsh also paid US$2.48 billion for 10 percent owned by private Indian group Videocon Industries.

With this sale, Anadarko Petroleum will have its stake in the Area 1 block reduced to 26.5 percent, but will remain as the block’s operator, as it still has the biggest single stake.

As well as the US group, with 36.5 percent, the group’s partners are Japanese group Mitsui & Co. (20 percent), Indian group ONGC and Indian company Bharat Petroleum, with 10 percent each, Thai state group PTT with 8.5 percent and Mozambican state company Empresa Nacional de Hidrocarbonetos, with 15 percent. (macauhub)