Business

Videocon, BPCL discover big gas reserve in African block

  • HT Correspondent, Hindustan Times, New Delhi
  • |
  • Updated: Apr 22, 2013 08:54 IST

Videocon Industries and Bharat Petroleum Corp Ltd (BPCL) on Monday reported a fourth huge natural gas discovery in an offshore Mozambique block, where they hold 10% each.

The discovery could fetch the private sector consumer durables major much higher stakes, far in excess of its earlier demand of $3 billion for a 10% stake in the field, which in most likely holds almost 70 trillion cubic feet of gas resources.

In almost identical but separate statements issued, the two companies said that Videocon Hydrocarbon Holdings, a wholly owned subsidiary of Videocon Industries, and Bharat PetroResources Ltd, a unit of BPCL, has made a new discovery in the offshore Area 1 of the Rovuma basin.

ONGC Videsh Ltd, the global arm of ONGC along with sister public sector company Oil India Ltd (OIL) were reported to be together negotiating for Videocon's stake in the block.

Most companies that did the due diligence of the block has said that Videocon's asking price was too high.

US energy firm Anadarko Petroleum Corp is the operator with a 36.5% stake in the block. Japan's Mitsui & Co Ltd is the second-biggest stakeholder with a 20% interest.

"The Orca-1 exploration well was drilled to a total depth of approximately 16,391 feet, in water depths of 3,481 feet," the statements said.

 

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