ONGC, OIL set to buy 10% stake in Mozambique gas field | business | Hindustan Times
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ONGC, OIL set to buy 10% stake in Mozambique gas field

business Updated: Aug 13, 2013 22:26 IST
HT Correspondent
HT Correspondent
Hindustan Times
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In line with India’s quest for energy security, state-run ONGC and Oil India Ltd (OIL) are understood to have cleared the last-mile hurdle in acquiring the 10% stake of Videocon Industries in the Mozambique gas field — the world’s largest gas fields — for $2.5 billion.

A senior official on the management of ONGC told HT that all partners of the Rovuma 1 field in the waters off the African nation have given their acceptance to the deal, which is now expected to be closed shortly.

This move assumes significance after ONGC last month lost the $5-billion bid for ConocoPhillips stake at Kashagan oil field in Kazakhstan, as the Kazakhstan government has used its first right of refusal to facilitate the deal for its national oil company KazMunayGaz (KMG).

“The consortium partners of the Rovuma 1 gas field have not exercised any of their preemptive rights to but Videocon’s 10% stake in the field... the Mozambique government is also in agreement and the deal is almost done,” the official said, adding that it will now be put up for final clearance by the Indian cabinet.

The Rovuma Area 1 deepwater block is said to be largest gas discovery off Africa’s east coast with estimated recoverable reserves of 35 to 65 trillion cu ft (tcf).

US-based Anadarko Petroleum is the operator of the project. Other partners include state-run Bharat Petroleum, Empresa Nacional de Hidrocarbonetos of Mozambique, Mitsui and Co of Japan and PTT Exploration and Production of Thailand.