Indian state companies ONGC Videsh, a subsidiary of the Oil and Natural Gas Corp (ONGC) has taken on loans totalling US$2.5 billion to pay for the acquisition of a stake in a natural gas block in Mozambique, the Press Trust of India reported.
In a statement the ONGC’s subsidiary for foreign business said it had reached an agreement with two international banking syndicates to fund the acquisition of 10 percent of the Area 1 block in the Rovuma basin in nortehrn Mozambique.
ONGC Videsh agreed in August 2013 to buy 10 percent of a 36.5 percent stake then owned by US group Anadarko Petroleum for US$2.6 billion.
Anadarko is still the block’s operator and has the biggest stake in it, and the remaining partners are Japan’s Mitsui & Co. (20 percent), ONGC Videsh and Oil India Ltd 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)