ONGC-OIL seals $2.5 bn stake buy from Videocon | business | Hindustan Times
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ONGC-OIL seals $2.5 bn stake buy from Videocon

State-owned ONGC along with Oil India Ltd OIL announced today joint acquistion of Videocon Industries’ 10% stake in a giant Mozambique gas field for $2.5 billion (Rs 16,500 crore) and may shell out a similar amount to buy another 10% stake from Anadarko of the US in the same field.

business Updated: Jun 25, 2013 20:26 IST
HT Correspondent

State-owned Oil and Natural Gas Corp (ONGC) along with Oil India Ltd (OIL) announced on Tuesday joint acquistion of Videocon Industries’ 10% stake in a giant Mozambique gas field for $2.5 billion (Rs 16,500 crore) and may shell out a similar amount to buy another 10% stake from Anadarko of the US in the same field.

With this, ONGC Videsh Ltd (OVL), its overseas arm, sewed India’s second biggest energy acquisition ever when it along with OIL will acquire stake in the Rovuma-1 field. The field is estimated to hold as much as 65 trillion cubic feet (tcf) of inplace gas reserves — more than 10 times the reserves in Reliance Industries’ KG-D6 fields, and has the potential to become one of the world’s largest liquefied natural gas producing hubs by 2018.

Besides the price for the stake, OVL-OIL will have to pay their share of the field development cost and the LNG plant, which will cost $15 billion and their share will come to $1.5 billion.

This is the third acquisition announced by OVL in the past 12 months, and since September last year OVL has announced deals worth about $8.5 billion.

This includes OVL’s acquisition of Hess Corp’s 2.7% stake in Azerbaijan’s largest oil field and an associated pipeline for $1 billion and the $5-billion deal last November for the purchase of ConocoPhillips’s 8.4% stake in Kazakhstan’s Kashagan project.